2026 (6) TMI 1231

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....ad, whereby, the order of the Adjudicating Authority confirming service tax demand along with interest and penalties has been upheld. 2. The facts, in brief, are that the appellant is engaged in execution of contracts involving supply of machinery/equipment along with installation, erection, commissioning and allied services. The appellant was duly registered with the Service Tax authorities under the category of "Maintenance or Repair Services". 3. Investigation by the Department revealed that during the period April 2005 to May 2007, the appellant had undertaken contracts which, according to the Department, were taxable under Erection, Commissioning and Installation Service (ECIS) and had suppressed the taxable value of services ren....

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....rcial Taxes & Ors [2022 (8) TMI 168 (SC)] ii. M/s Ramky Infrastructure Ltd., Vs CCE-II, Visakhapatnam [2022 (8) TMI 165 (CESTAT-HYD) iii. M/s Sai Teja Constructions Vs Commissioner of Service Tax, Hyderabad - ST [2019 (7) TMI 575 (CESTAT - HYD)] iv. M/s Vishwanath Projects Ltd., Commissioner of Service Tax, Hyderabad [2019 (11) TMI 675 (CESTAT-HYD)] 9. It is further submitted that even otherwise, the extended period could not have been invoked because there existed considerable ambiguity in law during the relevant period regarding taxability of works contracts. The appellant also submits that they were discharging VAT/Sales Tax on the goods portion, demonstrating bonafide belief that the contracts were works co....

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.... Thus, the contracts are not pure service contracts but are clearly composite indivisible contracts involving transfer of property in goods as well as service elements. Such contracts squarely fall within the ambit of works contract. 14. The primary issue is no longer res-integra. The Hon'ble Supreme Court in the case of Larsen & Toubro Ltd., supra, held that prior to introduction of works contract service with effect from 01.06.2007, composite works contracts were not liable to service tax under existing taxable service categories such as Erection, Commissioning and Installation Services (ECIS), commercial considerations etc. The Apex Court held that in the absence of machinery provisions for segregating service portion from goods porti....