M/S. Om Metals Infraprojects Ltd vs C.C.E., Jaipur-I
- CitationAppeal No.ST/638/2009-CU[DB]
Ratio decidendi
The rule this decision rests on
Works contracts involving the rendition of a service together with the supply of goods used in executing that work were not taxable as a service for the period before 01.06.2007, since the works contract service was introduced as a distinct taxable service under Section 65(105)(zzzza) of the Finance Act, 1994 with effect from that date, as declared by the Supreme Court in CCE, Kerala v. Larsen & Toubro Ltd., and a service tax demand founded on such a contract for the earlier period cannot be sustained.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? Yes 3. Whether Lordships wish to see the fair copy of the order? Seen 4. Whether order is to be circulated to the Department Authorities? Yes
Appeal No.ST/638/2009-CU[DB]
[Arising out of Order-in-Original No.7/2009(ST), dated 12.05.2009 passed by the C.C.E., Jaipur-I]
M/s. Om Metals Infraprojects Ltd. Appellant
Vs.
C.C.E., Jaipur-I Respondent
Appearance
Mr. Vivek Sharma, Advocate - for the appellant
Mr. Ranjan Khanna, DR - for the respondent
CORAM: Honble Justice G. Raghuram, President
Honble Mr. R.K. Singh, Member (Technical)
Final Order No.53115/2015, dated 01.10.2015
Per Justice G. Raghuram :
Heard ld. counsel for the appellant and ld. Departmental Representative for Revenue.
2. Assessee is the appellant. The appeal is preferred against the adjudication order dated 12.05.2009 passed by ld. Commissioner of Central Excise, Jaipur-I confirming service tax demand of Rs.1,43,73,658/- apart from interest and penalties as specified in the order. Proceedings were initiated on the premise that during 01.07.2003 to 31.03.2006, the appellant had provided Erection, Commissioning or Installation Service (ECIS) to NHPC, NTPC, Assam State Electricity Board and other public sector undertakings for construction of components of dams involving supply of goods integral to rendition of ECIS under turn-key contracts with recipients of this service.
3. The judgement of the Supreme Court in the CCE, Kerala Vs. M/s. Larsen & Toubro Ltd. & Anr [2015-SCC Online-SC-738] concludes the issue in favour of the appellant. The apex court has declared that works contracts involving rendition of service and supply of goods involved in the execution of such work, is not taxable prior to 01.06.2007, since works contract was introduced as an distinct taxable service under Section 65 (105) (zzzza) of the Finance Act, 1994, with effect from 01.06.2007.
4. In the light of the law declared, the impugned order is unsustainable and is accordingly quashed. The appeal is allowed. No costs.
(Justice G. Raghuram)
President
(R.K. Singh)
Member (Technical)
SSK
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