TaxTMI 
TaxTMI 
2025 (1) TMI 1040
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a recipient of "transportation of goods by road" services. It had registered with the service tax department and had been filing service tax returns. 2. Intelligence gathered by the department indicated that the appellant had not assessed and paid service tax correctly and that though the appellant had rendered services during 2008-09, it had obtained the service tax registration only on 19.03.2010. After scrutiny of the audit reports submitted by the appellant, its balance sheets, etc., a Show Cause Notice dated 18.10.2013 SCN was issued to the appellant proposing demand of service tax of Rs. 2,02,73,997/- for the period 2008-09 to 2011-12 invoking the extended period of limitation under section 73 of the Finance Act 1994 Finance Act. It....
X X X X Extracts X X X X
X X X X Extracts X X X X
....payment status 1. Construction of Road 16,21,20,777/- Not paid 2. Construction of boundary wall and area grading 4,59,76,158/- 24,04,910/- 3. Construction and fixing of tiles in water reservoir 53,39,347/- Not paid 4. Supply of machinery 1,75,407/- Not paid 5. Supply of boulders & dust 40,46,34/- Not paid 6. Supply of aggregate 1,56,29,937/- Not paid 6. Learned counsel for the appellant submits that it had paid service tax on S. No. 2 and had settled the issues pertaining to S. No. 4, 5 and 6 above under the Voluntary Compliance Encouragement Scheme VCES. Therefore, the only questions to be decided are the taxability of services at serial no. 1 and 3 above and the dispute regarding demand of servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nature of work contract services. For that reason, as per the judgment of the Supreme Court in Commissioner of C. Ex. & Customs, Kerala vs. Larsen and Toubro 2015(39)STR 913(SC) service tax could not have been demanded under the construction of complex services. As far as the "works contracts services" are concerned, while every service which is rendered along with use of materials falls under the definition of "works contract" not all works contracts are exigible to service tax. In terms of section 65(105) (zzzza) of the Finance Act, only some types works contracts covered within the definition were exigible to service tax. Section 65 (105) (zzzza) during the relevant period specifically excluded services rendered in relation to constructi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on GTA services alleged to have been received by the appellant. Learned counsel for the appellant submits that it had received transportation of services from individual truck owners and not from goods transport agencies and, therefore, no service tax was payable on them. The appellant also received some transportation services from goods transport agencies on which it had paid an amount of Rs. 3,30,671/- along with its VCES application 2013. The amount has paid stands appropriated. 14. He draws the attention of the Bench to Section 65 (50a) and section 65 (105) (zzq) which reads as follows: "Section 65(50a)-"goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment not....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e-negative list period without classifying the service deserves to be accepted. In fact, the impugned order mentions the service tax as being demanded under construction services/ works contract services. The demand is vague and deserves to be set aside on this ground alone. 21. It is also the submission of the learned counsel for the appellant that all disputed services, namely, construction of roads and construction and fixing of tiles in water reservoir were rendered along with supply of materials. He submitted few work orders and the contracts received by the main contractor in support of the appeal. There is nothing on record in the show cause notice or in the submissions made by the department to establish that these two services wer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ither on the construction of roads or on the tiling of the reservoir for dams cannot be sustained. 24. As far as the demand of service under reverse charge mechanism on GTA service is concerned, section 65 (50a) defines goods transport agency as any person who provides service in relation to transportation of goods by road and issues a consignment note, by whatever name called. Section 65 (105)(zzq) defines "goods transport agency service" as a service provided to any person by "goods transport agency" in relation to transport of goods by road in a goods carriage. Unless the service provider is a "goods transport agency", its services are not taxable either at the hands of the service provider or at the hand of service recipient because su....