TaxTMI 
TaxTMI 
2026 (9) TMI 412
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....y of Management, Maintenance or Repair service (MMRC) and under the category of manpower recruitment and supply agency service during the period from 16.06.2005 to 31.12.2010. 2. Appellant is a License Contractor of PWD and other Departments of Kerala Government. Alleging that Appellant failed to pay service tax for the above period and also failed to take registration under the relevant category of service tax, proceedings were initiated and in appeal no. ST/21090/2016, show cause notice was issued on 31.05.2010 for the period from 16.06.2005 to 31.03.2009 demanding service tax of Rs. 2,93,140/- under MMRS and Adjudication Authority as per order dated 18.11.2011 confirmed the demand and imposed penalties. Similarly, in the appeal no. ST....
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....carried out by the appellant involved supply of goods and if the appellant paid applicable VAT, demand confirmed by the impugned order under the category of Management, Maintenance or Repair Service is unsustainable. Learned CA further draws our attention to the finding where the classification of services under works contract was denied on the grounds that - a. Under the definition given, the repair/renovation/restoration works mention in clause (d) must be provided in relation either to clause (b) and (c); b. The canal is not for commerce or industry; c. Hence it is not covered under works contract. d. Since it is not works contract, it is taxable under MMRS 4. Learned CA also drew our attention to t....
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....erein both material and labour involved should also fall under works contract service only. Further reliance is placed on the following decisions wherein it was held that maintenance or repair works involving materials and in composite nature cannot be taxed under MMRS. a. Agarwal Engineering Works vs C.C., C. Ex. & S.T., 2019 (24) G.S.T.L. 264 (Tri. - Hyd.) b. Kailash Chawla vs CCE 25 Centax 337 (Tri.-Del) 5. Learned CA further submits that demand confirmed by invoking extended period of limitation is also unsustainable. The impugned order itself finds that there was no suppression and intention to evade payment of tax and only on that ground, appellate authority has set aside the penalty under section 78 of the Financ....
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....ntract is for the purposes of carrying out, a. erection, commissioning or installation of plant, machinery, equipment or structures, whether prefabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or construction of a new building or a civil structure or a part thereof, pipeline or conduit, primarily for the purposes of 11 commerce or industry; or (c) construction of a new residential complex or ....
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....racts simpliciter and not composite works contracts, such as are contained on the facts of the present cases. It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of property in goods transferred in the execution of a works contract." 11. Further We find that similar to appellant's case, in the matter of M/s Agarwal Engineering Works, the contracts clearly indicated that they would have to render services as well as provide materials related to those services. As far as materials are concerned, the Indian Railways have deducted an amount of 4% from their bill towards VAT....