TaxTMI 
TaxTMI 
2024 (2) TMI 1309
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..../s Hi-Rise Projects. 2. The Adjudicating Authority has dropped the demand of Rs.39,80,030/- against the Assessee under 'Construction of Residential Complex Service' (CRCS) for the period from 01.10.2006 to 31.05.2007 and Rs.8,74,10,198/- under 'Works Contract Service' (WCS) for the period from 01.06.2007 to 31.03.2010. In their grounds of Appeal, Revenue has relied on certain Board Circulars viz., Circular No. 128/10/2010-ST dt.24.08.2010 for their averment that the Commissioner has wrongly considered the service as falling under CRCS and not under WCS during the relevant period. Revenue has also relied on certain case laws in support of the fact that the services under CRCS have been brought under the umbrella of WCS with effect from 01.0....
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.... for the activities for the same services provided post 01.06.2007. 5. The main issue to be decided in the case is whether the activities/services, being provided by the Respondent to the service recipient, were falling under CRCS or WCS or otherwise, during the material period. Post judgment in the case of CCE & C, Kerala vs Larsen & Toubro Ltd [2015 (39) STR 913 (SC)], CRCS would not be the appropriate classification as this was in the nature of indivisible composite contract and therefore, would be more in the nature of WCS, and since there was no appropriate head i.e., WCS, available prior to 01.06.2007, the demand for this period would fall on this ground itself. In fact, the Board has also clarified vide Circular No. 151/2/2012-ST dt....
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....7, there was no scope for deciding the classification, in view of the fact that CRCS was appropriately covering the activity in terms of its definition and in fact, in terms of Notification, there was a provision for exclusion of value of material involved in providing that service, so that only the service portion is charged to service tax. However, post 01.06.2007, the situation has changed where two different services heads are now available in respect of indivisible composite contract, which is not being denied by either side. 8. The Commissioner has examined this aspect in OIO, specifically in Para 51.6, wherein relying on the provisions under Sec 65A(2), which relates to manner in which classification is to be effected when, prima fa....
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....t work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or (c) construction of a new residential complex or a part thereof; or (d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or (e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;" 10. This service will include any contract where transfer of property in goods is involved and which ....