Take notes as you read a judgment using our Virtual Legal Assistant and get email alerts whenever a new judgment matches your query (Query Alert Service). Try out our Premium Member services -- Free for one month.\n\nCustom, Excise & Service Tax Tribunal\nMakkar Construction Co. vs Ludhiana on 3 May, 2023\nCUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL\n                    CHANDIGARH\n                      REGIONAL BENCH - COURT NO. I\n\n                   Service Tax Appeal No. 266 of 2012\n\n [Arising out of Order-in-Original No. 24/LDH/2011 dated 23.11.2011 passed by the\n Commissioner of Central Excise, Ludhiana]\n\n\n\n M/s Makkar Construction Co.                               ......Appellant\n 267, Maya Nagar, Civil Lines, Ludhiana\n\n                                   VERSUS\n\n Commissioner of C.E., Ludhiana                            ......Respondent\n Central Excise House, F Block, Rishi Nagar, Ludhiana\n\n\n APPEARANCE:\n\n Present for the Appellant: Shri Surjeet Bhadu, Advocate\n Present for the Respondent: Ms Shivani, Authorized Representative\n\n\n CORAM: HON'BLE MR. S. S. GARG, MEMBER (JUDICIAL)\n         HON'BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)\n\n                     FINAL ORDER NO. 60115/2023\n\n                                                 DATE OF HEARING: 01.05.2023\n                                                DATE OF DECISION: 03.05.2023\n\n\n\n PER P. ANJANI KUMAR\n\n        Heard both the sides and perused the records of the case.\n\n\n 2.     The appellants assail the order dated 23.11.2011 by the\n\n Commissioner of Central Excise, Ludhiana, passed in pursuance of\n\n this Tribunal's Order No. ST/104/2010 dated 15.12.2010.\n\n\n 3.     Briefly stated the facts of the case are that the appellants are\n\n engaged in construction services and are registered for the same; the\n\n appellants have undertaken some construction for M/s Kangaroo\n\n Industries at Nalagarh, Solan, H.P. under a contract. The department\n                                   2                            ST/266/2012\n\n\n\n\nwas of the opinion that the contract did not specifically indicate the\n\ninvolvement of any material in the service provided by the appellants.\n\nDuring the period 01.10.2005 to 31.03.2006, the appellants have\n\navailed abatement as provided under Notification No. 15/2004-ST\n\ndated 10.09.2004 and 1/2006-ST dated 01.03.2006. The department\n\nwas of the opinion that the said abatement was not applicable as the\n\ninvolvement of the material in the contract.      A show cause notice\n\ndated 21.06.2007 was issued and the same culminated in the\n\nproceedings before us.\n\n\n4.   Learned Counsel for the appellants submits that as per the\n\ndirection of the Tribunal vide Final Order No. ST/104/2010 dated\n\n15.12.2010, the appellants have produced evidence in the form of\n\ncontract, VAT returns, Chartered Accountant Certificate, Chartered\n\nEngineer Certificate etc before the adjudicating authority; the\n\nevidence submitted clearly indicates that the payment made by the\n\nappellants towards the purchase of steel, cement etc; the address of\n\nthe appellants as mentioned in the documents is also the same as\n\nthat of M/s Kangaroo Industries, for which they have undertaken the\n\ncontract. Further, Learned Counsel submits that during the relevant\n\nperiod, work contracts were not leviable to any service tax as held by\n\nthe Apex Court in the case of Commissioner vs. Larsen & Toubro\n\nLtd - 2015 (39) STR 913 (SC) which is affirmed by the Apex Court\n\nin the case of Total Environment Building Systems Pvt Ltd -\n\n2022 (63) GSTL 257 (SC).\n\n\n5.   Learned    Authorized    Representative     for   the   department\n\nreiterates the findings of the impugned order.\n                                           3                         ST/266/2012\n\n\n\n\n6.         Having heard both the sides and having perused the records of\n\nthe case, we find that the contract is clearly for the construction on\n\nthe basis of rate fixed for per sq. ft.; the contract indicates quality of\n\nthe material in some clauses; moreover, the copies of the VAT\n\nreturns and the invoices clearly indicate the purchase of steel, cement\n\nand other material required for the construction; the fact that the\n\ninvoices raised by the supplier of the appellants contain reference to\n\nthe address of M/s Kangaroo Industries who have awarded the\n\ncontract to the appellants; Certificates issued by the Chartered\n\nAccountant and Chartered Engineer, go on to establish the fact of use\n\nof material in the work executed by the appellants. Therefore, we are\n\nof the considered opinion that the contract was not simplicitior but\n\nwas a composite contract. Therefore, we find that the appellants are\n\nentitled for the abatement of 67% of the value as claimed by them.\n\nAs such, the impugned order cannot be sustained and needs to be set\n\naside and we do so.\n\n\n7.         In view of the above, the appeal is allowed.\n\n\n                    (Order pronounced in the court on 03.05.2023)\n\n\n\n\n                                                              (S. S. GARG)\n                                                        MEMBER (JUDICIAL)\n\n\n\n\n                                                        (P. ANJANI KUMAR)\n                                                      MEMBER (TECHNICAL)\n\nRA_Saifi