TaxTMI 
TaxTMI 
2024 (5) TMI 199
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....n the construction of various buildings and structures including airports, Roads, runways, bridges, canals, dams, Commercial complexes, office/administrative buildings, etc. They have also entered into agreement with various departments of Ministry of Defence for construction of buildings, Residential complexes, canteens, etc. DGCI initiated investigation on the premise that appellant had failed to obtain registration, pay service tax for providing services of 'Renting of Immovable Property Service' and 'Works Contract Service' and file returns. 3. During the investigation, statements were recorded and appellant had furnished details of payments received for an amount of Rs. 55,08,87,101/ towards construction of residential complex for A....
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....rson. 6. Learned CA also drew our attention to letter dated F. No. 137/26/2006-CX.4 dated 05.07.2006, wherein Ministry of Finance clarified that service tax is leviable on construction of only such residential complexes, where the layout of the premise requires approval by an authority under any law for the time being in force. The learned CA submits that in the case of Defence Services layout, there is no such requirement of approvals. Hence service tax is not leviable on the activity undertaking by the appellant, being construction of residential complex for Army personnel. Therefore, service tax is not applicable for the remaining period i.e., from 01.06.2007 to 31.05.2010. Learned Counsel also drew our attention to the judgment of Ho....
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....r, it is also submitted that these constructions do not require any approval from any authority under any law for the time being in force. On these grounds, the appellants are not liable to service tax under "Construction of Residential Complexes Service". -------------------------------------------------------------- ------------------------------------------------------------------ ------------------------------------------------------------------ 7. On the first issue, we note that the tax liability of such residential units built for DGMAP, Ministry of Defence, has been clarified by the jurisdictional Commissionerate vide letter dated 10-8-2008 based on the Board's clarification to the effect that con....
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.... ii. Larsen & Toubro Ltd Vs. Commissioner of Service Tax, Kolkata 2020 (32) GSTL 538 (Cal.) iii. Ircon International Ltd Vs. Commissioner of Service Tax, Delhi 2017 (5) GSTL 221 (Tri.-Del) iv. Sugandha Construction Pvt Ltd Vs. Commissioner of C. Ex., Bhopal 2018 (9) GSTL 399 (Tri.-Del.) v. Khuran363.0a Engineering Ltd Vs. Commr. of C. Ex., Ahmedabad 2011 (21) STR 115 (Tri.-Ahmd.) vi. Commissioner of C. Ex., ST & Cus., Bangalore II Vs. - Nithesh Estates Ltd 2018 (17) GSTL 414 (Kar.) vii. URC Construction (P) Ltd Vs. Commissioner of Central Excise, Salem 2017 (50) STR 147 (Tri.-Chennai) viii. Commissioner of C.Ex., Ludhiana Vs. Dr. Lal Path Lab (P) Ltd 2007 (8) STR 337 (P&H) 9. Lea....
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....ment of the Hon'ble Supreme Court in the matter of CC Vs. Larsen & Toubro Ltd (Supra), and in the case of Total Environment Building Systems Pvt., Ltd., reported in 2022(63) G.S.T.L. 257(S.C.), wherein it is held that:- "22. As already noted, the definition of works contract was brought under the service tax net as per Section 65(105)(zzzza) of the Finance Act, 1994 by the insertion of the said definition. The said introduction was made pursuant to the Finance Act, 2007, which expressly made the service element in such works contract liable to service tax w.e.f. 1st June, 2007. By the said amendment, works contract which were indivisible and composite could be split so that only the labour and service element of such contracts woul....
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.... from the levy of service tax either wholly or partially, only when there is any "taxable service" as defined in sub-clauses of clause (105) of Section 65 of the Finance Act, 1994 and not otherwise. This Court agreed with the view taken by the Full Bench of the CESTAT in the judgment dated 6-9-2013 and dismissed the appeals of the Revenue. 26. Therefore, reliance placed by the assessees in the present case on the aforesaid judgments is just and proper. On the other hand, the contention of Ms. Diwan, Learned ASG to the effect that even prior to the aforesaid amendment being made to the Finance Act, 1994 service tax on works contract was leviable is not correct. It was being levied on purely service contract and not on service elemen....