2023 (10) TMI 1087

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....dustrial Construction Service (CICS). On scrutiny of records, it was noted that the appellant while providing construction services had obtained free supplies from the customer and had not discharged service tax liability according to the provisions of law. Show cause notice dt. 19.10.2012 was issued to the appellant proposing to demand the service tax under 'Commercial or Industrial Construction Services' for the period 2007-08 to 2011-12 along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand interest and imposed penalties. Hene this appeal. 2. On behalf of the appellant, learned counsel Sri G. Natarajan appeared and argued for the appellant. It is submitted by the learned c....

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....tigations as to the levy of service tax on Works Contract Services. Being interpretational issue, the invocation of extended period cannot sustain. Ld. Counsel prayed that the appeal may be allowed. 4. Ld. A.R Ms. Anandalakshmi Ganeshram supported the findings in the impugned order. It is argued by Ld. A.R that even if the construction is provided for educational institutions, these are taxable as clarified by the Board in its circular dt. 17.09.2004 and 1.11.2006. Further, some customers have not paid sales tax / VAT on the materials used in providing construction as they have not filed any VAT returns. The appellant falls under clause (i) of Section 65 (105) (zzza) and hence the Commissioner has correctly upheld the classification unde....

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....respect of roads, airports, railways, transport terminals, bridges, tunnels and dams." 6. Section 65 (105) (zzq) speak about the taxable services as under : "Taxable service means any service provided or to be provided to any person by any person in relation to Commercial or Industrial Construction service". 7. From the definition of "Commercial or Industrial Construction Service" it can be seen that the said definition speaks only about contract simplicitor which does not involve supply of goods / materials. After the introduction of 'Works Contracts Service' (WCS) w.e.f. 1.6.2007, the definition takes into account, the element of including the value of goods that have gone into the composite contract. 8. The Hon'ble Supr....

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....ervice tax under CICS / CCS / RCS prior to 1.6.2007 and after. Our view is supported by the fact that the method / scheme for discharging service tax on the service portion of composite contract was introduced only in 2007. .... 8. In the light of the discussions, findings and conclusions above and in particular, relying on the ratios of the case laws cited supra, we hold as under:- a. The services provided by the appellant in respect of the projects executed by them for the period prior to 1.6.2007 being in the nature of composite works contract cannot be brought within the fold of commercial or industrial construction service or construction of complex service in the light of the Hon'ble Supreme Court judgment i....