Order Date – 07 March 2023

Parties: M/s. Sakthi Construction India (P) Ltd. Vs The Commissioner of GST & Central Excise, Coimbatore Commissionerate

Facts – 

• The Appellant, M/s. Sakthi Construction India (P) Ltd, was found to be not discharged service tax on the entire consideration received by them for the period June 2005 to September 2006.
• Show cause notice was issued to the appellant proposing to demand the short paid service tax along with interest and also to impose penalties and the same was confirmed. 

Issue –

• Whether the appellant is liable to pay service tax on consideration received?

Order –

• The Tribunal held that the issue stands answered by the Hon’ble Apex Court in the case of Larsen & Toubro Ltd. wherein it was held that composite contracts were brought within the ambit of levy of service tax only with effect from 1.6.2007 by introduction of Section 65(105)(zzzza) i.e. Works Contract Services. Therefore only those contracts which were service simpliciter (not involving supply of goods) would be subject to levy of service tax under CICS / CCS / RCS prior to 1.6.2007 and after.
• Following the ratio of the above decision the impugned order is set aside. 
• Appeal is allowed.