2024 (4) TMI 327

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....ation Service etc. During the course of audit of the appellant's financial records on 07.09.2009, for the period April 2007 to March 2009, it was observed by the department that the appellant has not paid service tax on the services rendered by them to the main contractors. The details of these contracts are as follows:- No. Name of Main Contractor Invoice No. & Date Value as per Invoice (Rs.) Service Tax 12.36% (Rs.) 1 M/s. K.P. Buildcon R/20/22-11-2008 For Construction Wall at Pipavav Port 11,36,680- 1,40,494 2 M/s. K.P. Buildcon R/33/21-3-2009 For Civil Work for Tower Erection 5,12,947/- 6,340/- 3 Dhenu Developer R/17/27-11-2008 For Construction of Drainage (RMC Project) Pipeline 2....

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....arified that the when the service itself is exempted, the sub-contractor providing the service to main contractor shall also be entitled for exemption from service tax. On the basis of this argument, the appellant has contended that no service tax liability arises on them and therefore, the impugned order-in-appeal is legally not sustainable. The learned advocate has relied upon the following decisions on the issue:- (a) 2010 (19) STR 259 (Tri-Bang) - Nagarjuna Construction Co Limited vs. CCE (b) 2008 (12) STR 363 (Tri.-Chennai) - Indian Hume Pipe Co Limited vs. CCE - upheld by Hon'ble Madras High Court reported in 2015 (40) STR 214 (Mad)- CCE vs. Indian Hume Pipes Co Ltd, and further upheld by Hon'ble Supreme Cour....

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....l Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts commercial or industrial construction service, referred to in sub-clause (zzq) of clause (105) of section 65 of the Finance Act, and services provided in relation to the execution of works contract, referred to in sub-clause (zzzza) of clause (105) of section 65 of the Finance Act, provided to any person by any other person in relation to construction of port or other port, from the whole of the service tax leviable thereon under section 66 of the Finance Act. Explanation. - For the purposes of this notification, it is hereby declared that, - (i) commercial or industrial construction service or services provided in relatio....