CESTAT Bangalore says Service Tax on Composite Works Contracts Not Taxable Before 1 June 2007

CESTAT Bangalore held that composite construction contracts involving both goods and labour could not be vivisected and taxed under other service categories for the period prior to 1 June 2007. Relying on the Supreme Court's decision in Larsen & Toubro, the Tribunal set aside the demands. It also allowed a refund of service tax paid on subcontract work, accepting the evidence that the main contractor had discharged service tax on the relevant activities.