2019 (1) TMI 1434 – CESTAT MUMBAI – TMI – Scope of SCN – Works contract services or Construction services – appellants were issued show cause notices proposing to demand service tax under Works Contract Services. After due process of law, the original authority confirmed the demand under Construction of Residential Complex Services – Held that:- The appellant was discharging the service tax under Construction of Residential Complex. However, the SCN has been issued proposing to demand under Works Contract Services. After adjudication, the Commissioner held that the services are rightly classifiable under Construction of Residential Complex Services and confirmed the demand raised in the SCN under Works Contract Service – The Commissioner has traveled beyond the scope of the SCN and such confirmation of demand on a different category of service is not sustainable.
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The issue whether composite contracts involving both element of services as well as supply of goods would fall under
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d together and disposed by this common order. 2. The appellants were issued show cause notices proposing to demand service tax under Works Contract Services. After due process of law, the original authority confirmed the demand under Construction of Residential Complex Services. Aggrieved by such confirmation of demand, the appellant is now before the Tribunal. 3. The Ld. Counsel, Sh. M.A. Mudimannan appeared and argued for the appellants. He submitted that the appellants were engaged in Construction of Residential Complex. They were registered under Renting of Immovable Properties Service as well as Construction of Residential Complex. They filed ST.3 returns under these categories for 2007-08 and 2008-09 as well as for the year 2009-10. For a short period they did not pay service tax under Construction of Residential Complex Services pursuant to the clarification of Board s Circular in 2007. The show cause notices have been issued alleging that the services fall under Works Contract
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e below, as furnished by the appellants :- Appeal before CESTAT Period of dispute SCN No./DATE O in O No./Date Tax Amount as per OIO (after Cum tax) ST/420/2012 Nov 2007 – Mar 2009 504/2010 Dt.17.9.2010 23 dt.24.2.2012 1,30,35,725 14,75,687 ST/421/2012 Apr 2009 – Dec 2009 631/2010 Dt.18.10.2010 24 dt.24.2.2012 66,41,257 Total Disputed Tax (Apart from Interest & Penalties) Rs.2,11,52,669 6. At the foremost, it has to be mentioned that the appellant was discharging the service tax under Construction of Residential Complex. However, the show cause notice has been issued proposing to demand under Works Contract Services. After adjudication, the Commissioner held that the services are rightly classifiable under Construction of Residential Complex Services and confirmed the demand raised in the show cause notice under Works Contract Service. The Commissioner has travelled beyond the scope of the show cause notice and such confirmation of demand on a different category of service is not s
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