Case Law Details
Ganesh Narayan Sharma Vs C.C.E. & S.T. (CESTAT Delhi)
I. The construction works executed by the appellant were rendered under composite contracts which involved both rendering of service as well as supply of goods and hence such contracts are in the nature of works contracts. The Hon’ble Supreme Court in the case of Larsen & Toubro reported at 2015 TIOL 187 SC-ST has held that ‘composite works contracts’ will be liable to service tax only w.e.f. 01/06/2007 when a separate entry was added in the statute for works contract under Section 65 (105) (zzzza) of the Finance Act, 1994. Accordingly, It was submitted that no Service Tax can be levied on the construction activity of the appellant for the period up to 31/05/2007.
II. Since the taxability of works contract was the subject matter of dispute for a long time and the matters were referred to different Larger Benches of the Tribunal and was finally resolved by the Supreme Court in the above case, hence the Department is not justified in enforcing the demand for service tax for the extended period as has been held in the following cases.
i. Anand Construction Work V/s Commissioner 2017 TIOL 642 (Tri-Del).
ii. Bhopal Switch Gear Pvt. Ltd. V/s Commissioner 2017 TIOL 2904 (Tri-Del).
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