2023 (8) TMI 250

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....rcial or Industrial Construction Service as defined under Section 65 (25b) of the Finance Act, 1994 (ii) Whether the appellant is required to include the value of free supplied material or provided by a client/ service receiver in the value of taxable service. 2. Shri Nilesh Suchak, Learned Counsel appearing on behalf of the appellant at the outset submits that with effect from 01.06.2007, the new service namely Works Contract Service was made effective , classification of aforesaid service would undergone a change in case of long term contracts even though part of the service was classified under respective taxable service prior to 01.06.2007. This is because the works contract describes the nature of activity more specifically....

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....sued on 12.07.2011 is hopelessly time bar as the show cause notice was served beyond the normal limitation period of one year. 3. Shri Prakash Kumar Singh, Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both sides and perused the records. We find that the demand was raised under the category of Commercial or Industrial Construction Service for the period 21.07.2007 to 31.07.2009. With effect from 01.06.2007, a particular nature of the construction service was brought under works contract service for which certain conditions are required such as execution of project with material and the assessee paid VAT under works con....

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....on'ble Supreme Court in the case of CST Vs. Bhayana Builders (P) Ltd - 2018 (10) GSTL 118 (SC). Moreover considering the Apex Court judgment this Tribunal in the appellant's own case decided the issue in the favour of the appellant vide Final Order No. A/10425/2019 dated 28.02.2019. The said decision is reproduced below:- " The issue involved is whether for the purpose of granting exemption under Notification No. 15/2004-ST, the value of the free supplies material should be added in gross value of Commercial or Industrial Construction Service. 2. Shri N.V. Shuchak Ld. Chartered Accountant appearing on behalf of the appellant at the outset submits that this issue has been settled in the case of Bhayana Builder (P) Ltd. Vs. ....

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....s Ltd. a.Polished Kota Stone, ceramic tiles, Marbo-granite b.Aluminum Items-doors, windows and ventilators, Aluminum sections & glazing. Payment so made shall be deducted from the subsequent R.A. Bills when the finished item of that particular material is claimed as executed. 8(c). RETENTION MONEY 5% to be deducted in Cash from each & every running bill of the contractor. The same shall be released as under: (i) 2.5% shall be released after virtual completion of all works. However, in case contractor submits bank guarantee for 2.5% of the contract value covering the period of contract, the payment will be released against the bank guarantee. (i) 2.5% shall be released on submission ....

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....ontract, the payment will be released against the bank guarantee. (ii) 2.5% shall be released on submission of Performance Bank Guarantee drawn from a nationalized bank for 2.5% of the total value covering the defect liability and maintenance period of 12 months. The Payment mentioned in clause 8 C (i) will be released subject to no deductions on account of liquidated damages. CS torrent Scanned with CamScanner RES LTD Document 3 Torrent Pharmaceuticals Ltd. TPL Corporate Office Torront House, Off Ashram Road, Ahmedabad-380 009. India Phone: (079) 26585090/ 26583060 Fax: (079) 26585244 8(d). RUNNING ACCOUNT BILL The Contractor shall submit monthly runni....

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....orks Registration Certificate Number Permission No Period from contract 24073400674 01/01/2008 to 31/01/2008 Name of the dealer: KIRTI INFRASTRUCTURES LTD. Address : 3/PAURAV, 9-A, SWASTIK Soc., NAVRANGPURA, AHMEDABAD The details of the turnover of sales of goods involved in the works contracts are given as under:- execution of ISrl Date [Nol 111 12 1 13 1 141 151 Invoice No. Name of the contractee Amount Rs. Torrent Pharmaceuticals Ltd. 27285441 Nandesari Industries Associati IVadodara Mahanagar Seva Sadan i Aventis Pharma Ltd. Endeka Ceramics Ltd. 32352041 2508551 35239751 40052691 A seperate sheet is to be attached for more d....