VIRAL BUILDERS Vs. COMMISSIONER OF CENTRAL EXCISE, SURAT

JUDGEMENT

(1.) AS per facts on record, the appellant is a contractor engaged in providing services under the heading Commercial or Industrial Construction Services. The appellant undertook construction services for various user organization viz. L&T Limited., RIL, Gujarat Gas Company Limited during October 2006 to January 2007 under contracts/work orders. The appellant paid the service tax on such construction services, provided to the user organizations, availing the benefit of a conditional exemption notification No. 01/2006 -S.T., dated 1 -3 -2006 which grants exemption from service tax in excess of tax calculated on one third of the gross amount charged subject to various conditions enumerated therein. The appellant also engaged sub -contractors namely (a) M/s. Sun Constructions (b) M/s. Tejaswani Constructions and (c) M/s. Harsh Constructions for carrying out the construction services provided by the appellant as main contractor. Service tax was paid by the sub -contractors on the services provided by them to the appellant (main contractor) under the category of Commercial or Industrial Construction Services. The sub -contractors also discharged the service tax liability availing benefit of the same exemption Notification 01/2006 -S.T. The appellant filed a claim of refund of Service Tax amounting to Rs. 19,15,755/ - on the grounds that : -

(2.) SHOW cause notice dated 14 -9 -2007 was served on the appellant proposing to reject the claim of refund. The original adjudicating authority rejected the claim on the grounds that services provided by the sub -contractor are in the nature of input services for the appellant (main contractor) and that the tax paid by sub -contractor is correct and there is no mistake on this account.

(3.) THE above order of original adjudicating authority was appealed against before Commissioner (Appeals) on the following grounds : -