2026 (8) TMI 1504

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....to Rs.1,41,29,304 (inclusive of cesses), along with interest and penalty of Rs.14,12,930/- under Section 76(1) of the Finance Act, 1994, has been confirmed. 2. The facts of the case are that the appellant is inter alia engaged in execution of various works contracts involving Mine Shafts and Tunnels at the mining sites of their various clients. It is the case of the appellant that the underlying agreements executed by them represent indivisible, composite "Works Contracts", which inherently entail both the provision of construction services and the transfer of property in goods involved during execution. Structurally, the Mine Shafts and Tunnels under contract are constructed for the essential objective of creating a passage to access mi....

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....sequently, a Show Cause Notice dated 21.02.2018 was issued proposing to deny the benefit of the Composition Scheme and the partial RCM, seeking to levy Service Tax on the entire gross value charged, including the cost of goods and materials sold or supplied during execution, and hence, to demand the differential Service Tax liability of 1,41,29,304/- invoking the extended period provided in the proviso to Section 73(1) of the Act, alongside interest under Section 75, and penal proposals under Sections 77 and 78(1). 5.1. The appellant contested the said allegations vide their detailed reply dated 04.0.2019, wherein they challenged the reclassification of an indivisible contract involving materials and questioned the invocation of the exte....

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.... dated 14/31-05-2012, 14-09-2012, and 07-08-2013, for the immediately preceding period i.e., April 2014 to March 2015. Additionally, he also advanced various submissions on merits, emphasizing the indivisible nature of the works contract involving the transfer of property in goods, and placed reliance on a catena of judicial precedents to argue that the activity cannot be arbitrarily reclassified under "Site Formation Services". He accordingly prayed for setting aside the impugned order and allowing the appeal with consequential reliefs. 9. On the other hand, the Ld. Authorized Representative of the Revenue supported the impugned order. 10. Heard the parties and considered their submissions. 11. From a perusal of the records, we fi....

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....aulage Tunnel, Manway Tunnel, consisting of excavation, construction, fabrication, Erection etc. Pre cast RCC Slabs, Cement, Concrete, etc. Tax Rs.2,05,585/- paid under work contract service under partial RCM under Notification No.30/2012-ST dated 20-06-2012 (Sl. No.9) on 50% of 33% of taxable value of Rs.72,90,809/- 11.1. it is evident that the operations executed by the appellant are inherently composite and indivisible, involving the simultaneous supply of materials and provision of construction services in relation to Mine Shafts and Tunnels. The activity undertaken by the appellant therefore bear the essential characteristics of "Works Contract Services". Consequently, the Revenue's attempt to vivisect such indivisible contrac....