TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 1132
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Ministry of Urban Development to the Govt. of India, out of the allocated budgetary support provided for North East region including Sikkim to be operational in the Ministry of Housing & Urban Poverty Alleviation from the financial year 2001-2002, Vider Order No. K-11019/19/2011-UPA, Govt. of India, Ministry of Housing & Urban Poverty Alleviation (UPA Division). The project is organized by the Govt. of Assam and the Govt. of Assam issued a Work Contract for construction of the Commercial Complex for the benefit of the poor and low- income group for providing support under the Central Pool. The Contract was allotted by the DDA under 10% pool fund for an amount of Rs. 3,98,29,677/- which includes supply of Materials, Technical Specifications, Drawings etc. 3. The appellant considered that the services rendered to the State Government are exempted from payment of service tax and accordingly not paid service tax for the construction service rendered. The department was of the view that the said activity is liable to service tax under the category of 'commercial or industrial construction service' on the ground that after construction, the complex is used for commercial or industria....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is Tribunalin the case of M/s. National Building Construction Corporation Ltd. v. Commissioner of Central Excise, Shillong [2022 (66) G.S.T.L. 476 (Tri. - Kolkata)] wherein it has been held that the construction work undertaken along with supply of materials is appropriately classifiable as 'works contract service'. 5.1. Accordingly, the Appellant prayed for setting aside the demand confirmed in the impugned order. 6. The Ld. Authorized Representative of the Revenue submits that as the appellant has rendered services for construction of commercial complexes which are meant for commercial use and hence the demand has been confirmed under the category of 'commercial or industrial construction service' in the impugned order. Thus, he prayed for upholding the demand confirmed against the appellant. 7. Heard both sides and perused the appeal records. 8. We observe that the appellant has rendered the service of construction of a commercial complex at Dibrugarh, Assam under the 10% pool fund provided by the Ministry of Urban Development, Govt. of India, out of the allocated budgetary support provided for North East region including Sikkim. According to the Appellant, the commercial co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on Building Contracts, at p. 165. It is possible that the parties might enter into distinct and separate contracts, one for the transfer of materials for money consideration, and the other for payment of remuneration for services and for work done. In such a case, there are really two agreements, though there is a single instrument embodying them, and the power of the State to separate the agreement to sell, from the agreement to do work and render service and to impose a tax thereon cannot be questioned, and will stand untouched by the present judgment." (at page 427) 18. Similarly, in Kone Elevator India (P) Ltd. v. State of T.N. - (2014) 7 SCC 1 = 2014 (34) S.T.R. 641 (S.C.) = 2014 (304) E.L.T. 3 (S.C.), this Court held :- "Coming to the stand and stance of the State of Haryana, as put forth by Mr. Mishra, the same suffers from two basic fallacies, first, the supply and installation of lift treating it as a contract for sale on the basis of the overwhelming component test, because there is a stipulation in the contract that the customer is obliged to undertake the work of civil construction and the bulk of the material used in construction belongs to the manufacturer, is not....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, such contract would be covered by the term "works contract". Nothing in Article 366(29-A)(b) limits the term "works contract" to contract for labour and service only. The learned Advocate General for Maharashtra was right in his submission that the term "works contract" cannot be confined to a contract to provide labour and services but is a contract for undertaking or bringing into existence some "works". We are also in agreement with the submission of Mr. K.N. Bhat that the term "works contract" in Article 366(29-A)(b) takes within its fold all genre of works contract and is not restricted to one specie of contract to provide for labour and services alone. Parliament had all genre of works contract in view when clause (29-A) was inserted in Article 366." (at para 72) 20. We also find that the assessees' argument that there is no charge to tax of works contracts in the Finance Act, 1994 is correct in view of what has been stated above. ... 24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from t....