2026 (6) TMI 1104

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.... noticed that the work undertaken by the appellant through sub-contractors either with or without supply of materials, the Revenue alleged that the appellant was not eligible for benefit of Notification No. 12/2003 dated 20.06.2003 and hence, they were liable to pay service tax on the gross amount. Accordingly, notice was issued to the appellant. On adjudication, the Commissioner in the impugned order confirms service tax amount of Rs.8,43,88,666/- for the period from October 2005 to March 2008 and for the month of July 2010. Aggrieved by this order, the appellant is in appeal before us. 2. The Learned Counsel submits that the works undertaken by the appellant are in the nature of Works Contract which is liable to be taxed only with effe....

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....r work and labor, a work contract cannot be different from service contract. He further observes that if your work contract is an invisible service contract whether or not involving use of goods which get consumed or get passed on to service received either as such or intent that service is taxable. The works contract will attract service tax and if the works contract is a composite contract involving sale of goods and one or more services and those services are taxable and service tax will be chargeable on the value of these services. He holds that there is nothing in Section 65(105) and Section 66 of the Finance Act, 1994 from which it can be inferred that the taxable services defined in various clauses of Section 65(105) have to be stand....

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..... We need only state that in view of our finding that the said Finance Act lays down no charge or machinery to levy and assess service tax on indivisible composite works contracts, such argument must fail. This is also for the simple reason that there is no subterfuge in entering into composite works contracts containing elements both of transfer of property in goods as well as labour and services. 44. We have been informed by counsel for the revenue that several exemption notifications have been granted qua service tax "levied" by the 1994 Finance Act. We may only state that whichever judgments which are in appeal before us and have referred to and dealt with such notifications will have to be disregarded. Since the levy itself of....