TaxTMI 
TaxTMI 
2026 (3) TMI 976
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....June 2005 to June 2007 and registered under said category. During the period, Appellant had entered into agreement with prospective buyers of individual apartment for sale of undivided share in the immovable property and also entered into construction agreement with the prospective buyers. Though the Appellant was not liable to pay service tax on the amount received from the client, as an abounded precaution, Appellant paid service tax with effect from 16.06.2005 under the taxable category of construction of complex services. Thereafter with effect from 01.06.2007, works service contract was introduced and Appellant vide letter dated 31.05.2007 informed the respondent that they shall thereafter classify their services under Works Contract a....
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....ncluding construction of residential complexes as the said categories do not envisage to cover composite supply of goods and services. Learned Counsel further submits that the issue is no more res integra and as per the judgment of the Hon'ble Supreme Court in the matter of the Commissioner of Central Excise and Customs Vs. Larsen and Toubro Limited reported in 2015 (39) STR 913 SC, wherein it was stated that service simplicitor contracts alone are liable to service tax prior to 01.06.2007 and does not provide for levy on composite works contract such as the present contract. In this regard, Learned Counsel relied on large number of decisions and submits that as regarding supply of composite service it can be taxed only under the category o....
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....considered and it is held that:- "19.2 So far the issue of tax liability with respect to ongoing projects (which were started prior to 01.06.2007) when the head of works contracts was introduced in the Finance Act, view had been taken by the Revenue and also by some High Courts that in case of ongoing projects though the activity is classifiable under 'works contract service with effect from 01.06.2007 however, the benefit of composition scheme cannot be availed. We find that the rulings being relied upon by the Revenue against the appellant are all prior to August, 2015 when the Apex Court held that in case of composite contracts, service tax cannot be demanded prior to 01.06.2007 under the existing heads of services like CCS,....
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....artment has demanded the duly denying the opportunity. We find that the Rule 3 (1) of Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007". "14. It is clear from the Rule that the person providing Works Contract can pay service tax under Composition Scheme if he opts for the same before payment of service tax. The appellants have exercised the option to go under Compensation Scheme vide letter dated 14.06.2007, the same is not disputed by the Department who sought to deny the benefit in view of the Circular discussed above and the Circular loses its relevance after the judgment in the case of L&T. We find that Tribunal has gone into very same issue in the case of B.R. Kohli Construction Pvt. Ltd. Vs CST, Delh....