Larger Bench of Tribunal held that Works Contracts are exigible to Service tax even before June 1, 2007

Last updated: 09 April 2015

Court :
Hon’ble CESTAT, Delhi

Brief :
The matter raised before the Larger Bench of the Hon’ble CESTAT, Delhi in the instant case is that whether components of a composite transaction amounting to supply of labour/ rendition of service(s), under a Works Contract ought to be classified only under erstwhile Section 65(105)(zzzza) of the Finance Act, inserted vide the Finance Act, 2007, w.e.f June 1, 2007, or are also comprehended within the ambit of existing taxable services such as Commercial or Industrial Construction Service (“CICS”), Construction of Complex Service (“COCS”), or Erection, Commissioning or Installation Service (“ECIS”).

Citation :
Larsen and Toubro Ltd, Kehems Engg Pvt Ltd Vs. CST, Delhi/ CCE & ST, Indore/ CCE/ Rajkot and CCE & ST, Indore Vs. Kehems Engineering Pvt. Ltd. [2015-TIOL-527-CESTAT-DEL-LB]