Case Law Details
Commissioner Of Service Tax Vs Solux Galfab Private Limited (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata recently issued a significant ruling in the case of M/s. Solux Galfab Private Limited vs. Commissioner of Central Excise & Service Tax, Kolkata. This ruling, dated September 25, 2023, sheds light on the liability of service tax on construction services provided before June 1, 2007, with a particular focus on composite contracts that involve the supply of materials.
CESTAT, Kolkata in above case held that the assessee was not liable to pay service tax on construction services for the period before June 1, 2007. As there is a composite contract wherein supply of materials is also involved, therefore, it merits classification as works contract service, which was not in service tax net prior to June 1, 2007.
Facts:
M/s. Solux Galfab Private Limited, (“the Appellant”) operated as a service provider, offering various services, including Business Auxiliary Service (“BAS”), Construction Service, Erection and Painting Service, and Goods Transport Agency (“GTA”) Service. Directorate General of Central Excise Intelligence (“DGCEI”) conducted an investigation and found that the Appellant had not paid service tax prior to July 03, 2006 for the services rendered.
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