𝗖𝗲𝘀𝘁𝗮𝘁 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗪𝗼𝗿𝗸𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: Works contract services are taxable from 1.6.2007; no service tax can be demanded for periods before this date.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s. Sakthi Construction India (P) Ltd. 𝗜𝘀𝘀𝘂𝗲: Non-payment of service tax for June 2005 to September 2006 led to a show cause notice, demanding short-paid tax, interest, and penalties.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal, citing the Supreme Court's decision in Larsen & Toubro Ltd., ruled that composite contracts were subject to service tax only from 1.6.2007. Therefore, service tax is not applicable for contracts before that date not involving goods. The demand was set aside, and the appeal was allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Sakthi Construction India (P) Ltd. Vs The Commissioner of GST & Central Excise, Coimbatore Commissionerate 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 07 March 2023 📜 This ruling clarifies that works contract services are not subject to service tax for periods prior to 1.6.2007.