2026 (2) TMI 601

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....maintenance or repair services and consulting engineers services in the nature of works contract services prior to 01.06.2007. 2. Appellant is engaged in construction of civil structures like road, bridges, canal, etc. and the construction is carried out on works contract basis and appellant used to pay VAT as applicable. However, alleging that appellant failed to pay service tax for the period from October 2004 to March 2007 under works contract, proceedings were initiated and adjudicating authority as per the impugned order dated 13.01.2011 confirmed the demand under Construction of Residential Complex; Construction of Commercial Complex Services; Management, Maintenance or Repair Services and Consulting Engineers Services and also imp....

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....tion Service and as per the Final Order No. 75873/2023 dated 28.06.2023, it had held that such activity is also falling under 'works contract'. As regarding the activity falling under Engineering Consultancy Service, learned counsel drew our attention to the decision in the case of M/s. Four EF Constructions vs. Commissioner of Service Tax, Bangalore: 2024 (12) TMI 1300 - Cestat Bangalore wherein it has held that appellant is not liable to pay service tax prior to 01.06.2007 under the category of 'Erection Commissioning or Installation Services' in view of the decision of Hon'ble Supreme Court in the case of M/s. Larsen & Tourbo Ltd. and for the period after 01.06.2007, the activity of the appellant is classifiable under 'works contract ser....

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....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 would be taxed under the heading "Service Tax". 23. It is in the above backdrop that the definition of Works contract inserted for the first time by virtue of Section 65(105)(zzzza) under the Finance Act, 2007 assumes significance and has t....