Shree Balaji Engicons (P) Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)
In the case of Shree Balaji Engicons (P) Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata), the appellant challenged a demand for Service Tax categorized under “commercial or industrial construction service” for the period from 10.09.2004 to 31.03.2005. The appellant’s services involved a turnkey contract for developing an ash pond, including the supply of materials. The CESTAT ruled that such services fall under “works contract service,” which became taxable only from 01.06.2007, as per the Supreme Court’s decision in Commissioner of Central Excise and Customs, Kerala v. Larsen & Toubro Ltd. Therefore, no service tax was payable for the period in question. The demand was deemed unsustainable, and no penalty was imposed. The appeal was allowed with consequential relief.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The appellant is in appeal against the impugned order wherein the demand of Service Tax has been confirmed against them under the category of “commercial or industrial construction service” for the period from 10.09.2004 to 31.03.2005 by issuance of the Show Cause Notice dated 07.09.2009 for the activity of the appellant namely, turnkey contract for development of ash pond.
