2026 (4) TMI 948

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.... Tax amounting to Rs. 1,47,62,972/- along with interest under Section 75 of the Finance Act, 1994 and penalties under Section 76 and 78 of the Finance Act. 2. The appellant, M/s Swarnandhra IJM II Integrated Township Development Company (P) Ltd., is a joint venture between M/s IJM India Infrastructure Ltd., and M/s Andhra Pradesh Housing Board (APHB) and is engaged in the development of an integrated township project. 3. During the course of audit the Department issued Show Cause Notice dated 24.04.2012 proposing demand of Service Tax on the following grounds: a) Consulting Engineer Service received from IJM, Berhad, Malaysia under Reverse Charge Mechanism in terms of Section 66A of the Finance Act, 1994 for the period Octobe....

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....act Service are liable only under category of Works Contract Service and not Construction of Complex Service. In this regard Learned Counsel for the appellant reliance placed on foreign decisions: i) Real Value Promoters (p) Ltd., Vs Commissioner of GST & CE, Chennai [2018-TIOL-2867-CESTAT-MAD] ii) Navya Constructions Vs Commissioner of Customs, Central Excise & Service Tax, Visakhapatnam - I - Final Order No. A/30225/2023 dated 08.08.2023. iii) NCC Ltd., Vs Commissioner of Customs, Central Excise & Service Tax - Final Order No. A/30052/2023 dated 13.04.2023. iv) Ramky Infrastructure Ltd., Vs Commissioner of Central Tax, Visakhapatnam - II - Final Order No. A/30069/2009 dated 07.07.2022. 9. Learned Cou....

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.... has failed to discharge Service Tax liability on the services in question and therefore, the demand has been correctly confirmed. 12. We have carefully considered the submissions of both sides and perused the records. 13. It is an admitted that the activities under taken by the appellant involved composite Works Contract including transfer of property in goods. 14. The Hon'ble Supreme Court in Larsen & Toubro Ltd., (supra), has categorically held that indivisible Works Contract cannot be subjected to Service Tax under other taxable categories such as construction service prior to introduction of Works Contract Service on 01.06.2007. Further, even after 01.06.2007 such composite contracts are taxable only under the specific categor....