2023 (11) TMI 683

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....nterest and penalty. 2. The appellant was engaged as a sub-contractor by M/s Simplex Infrastructure [Main contractor] which had been awarded a contract for construction of New International Terminal building complex at Jaipur Airport. The main contractor engaged the appellant as a sub-contractor for supplying, installation, testing and commissioning of heating, ventilation and air conditioning system at the building complex. According to the appellant, the contract awarded by the main contractor to the appellant involves both transfer of material as well as provisioning of services and, therefore, the contract is composite in nature. 3. A show cause notice dated 23.10.2012 was issued by the department alleging that the appellant was l....

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....g Complex at Jaipur, but has declined to classify the service rendered by the appellant under works contract service for the reason that appellant had not paid VAT. 8. Shri A.K. Batra learned counsel for the appellant has submitted that the Commissioner (Appeals) committed an error in declining to categorise the services rendered by the appellant under works contract service solely for the reason that the appellant had not paid VAT on the transfer of propriety in goods involved in the execution of the contract. It is his submission that what was required to be examined was the nature of service actually performed by the appellant and not whether the appellant had paid VAT. 9. Learned authorized representative appearing for the Departm....