2024 (12) TMI 1405

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....e that the appellant are engaged in the activities pertaining to the execution of interior works viz. construction of partitions, false ceilings, plastering, tiling of floor and wall etc. with regard to buildings or civil structures as per the order of the customers. The said activities alleged to fall under the category of "Commercial or Industrial Construction Services" as defined under Section 65(25b) of the Finance Act, 1994. On the basis of intelligence, DGCEI initiated investigation against the appellant for non-payment of service tax even though the aforesaid taxable service had rendered by the appellant during the relevant period. On completion of investigation, show-cause notice was issued to the appellant on 09.09.2009 alleging no....

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....ettled by the Hon'ble Supreme Court in various judgments whereunder it has been held that prior to 01.06.2007, Works Contract Service was not leviable to service tax under Finance Act, 1994. In support, they have referred to the following judgments:- * Total Environment Building Systems Ltd Vs. Deputy Commissioner of Commercial Taxes [2022(63) GSTL-257 (SC)]. * Commissioner of Central Excise Customs Kerala Vs. Larsen & Toubro Limited [2015(39) STR-913(SC).] * KVJ Builders & Developers P.Ltd Vs. Commissioner of Central Excise and Customs, Cochin Commissionerate, Cochin [2024(1) TMI 893-CESTAT Bangalore] * M.Srirangesh Hegde Vs. Commissioner of CE Mangalore [2024 (388) ELT 381 (Tri.Bangalore)] * Co....

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.... under Works Contract may be adjusted and the balance amount be refunded to them. 4. Learned AR for the Revenue reiterated the findings of the learned Commissioner. 5. Heard both sides and perused the records. 6. The short question involved in the present appeal for determination is whether the appellant is required to discharge service tax during the period 16.05.2008 to 31.03.2008 in rendering services of the nature of interior works such as construction of partitions, false ceilings, plastering, tiling of floor and wall involved both material as well as service component. The appellant had claimed that the services rendered by them throughout the period is in the nature of Works Contract Service which could be revealed from the ....

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....ances, denial of benefit of composite scheme under Works Contract Service w.e.f. 01/06/2007, is bad in law and levy of service tax prior to 01/06/2007. when the services are in the nature of 'Works Contract Service' also cannot be sustained in view of the judgment of the Hon'ble Supreme Court in the case of Total Environment Building Systems (P) Ltd. Vs. Deputy Commissioner of Commercial Taxes [2022(63) GSTL 257 (SC)]. Their lordships in the said case held as follows:- 12. What was said by the Constitution Bench in Indra Sawhney v. Union of India, 1992 Supp (3) SCC 217 and Keshav Mills Co. Ltd. v. Commissioner of Income Tax, Bombay North, Ahmedabad, AIR 1965 SC 1636, on the principle of stare decisis clearly bind us. The judgment o....

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..... It is to be noted that the said decision of the Delhi High Court in the case of G.D. Builders (supra) has been specifically overruled by this Court in the case of Larsen and Toubro Limited (supra). The decision of the Delhi High Court in the case of G.D. Builders (supra) has been considered by this Court in the case of Larsen and Toubro Limited (supra) in paragraphs 28, 29, 30, 32, 33, 38 and 39 and ultimately, this Court opined that the decision of the Delhi High Court in the case of G.D. Builders (supra) is in fact contrary to a long line of decisions. It is further specifically observed and held that the decision of the Delhi High Court in the case of G.D. Builders (supra) is wholly incorrect in its conclusion that the Finance Act, 199....