M/S. TOTAL ENVIRONMENT BUILDING SYSTEMS PVT. LTD versus THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES & ORS

Citation: [2022] 17 S.C.R. 883 · Decided: 02-08-2022 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Disposed off

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Judgment (excerpt)

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   [2022] 17 S.C.R. 883
883
M/S. TOTAL ENVIRONMENT BUILDING SYSTEMS PVT. LTD.
v.
THE DEPUTY COMMISSIONER OF COMMERCIAL
TAXES & ORS.
(Civil Appeal Nos. 8673- 8684 of 2013)
AUGUST 02, 2022
[M. R. SHAH AND B. V. NAGARATHNA, JJ.]
Finance Act, 1994: s. 65(105) (zzzze)(as amended) — Works
contract – Composite Works Contract — Levy of service tax – Issue
as regards the levy of service tax on Composite Works Contracts
prior to the introduction of the Finance Act, 2007 by which the
Finance Act, 1994 came to amended to introduce s. 65(105) (zzzze)
pertaining to Works Contract – Held: For the period prior to
introduction of Finance Act, 2007, service tax was not leviable under
Finance Act, 1994 on indivisible works contracts – Binding decision
of the Court in the case of  Larsen and Toubro Limited, is followed –
Larsen and Toubro Limited’s case has stood the test of time and has
never been doubted earlier – Said decision has been followed
consistently by this Court as well as by various High Courts and
the tribunals – If the prayer to reconsider and/or review the judgment
in Larsen and Toubro Limited is accepted, it may unsettle the law,
which has been consistently followed since 2015 onwards – Thus,
on the principle of stare decisis, Larsen and Toubro Limited’s case,
neither needs to be revisited, nor referred to a larger Bench of this
Court and that too after a period of almost seven years – Thus, the
orders passed by the respective High Courts/tribunals that for the
period pre-Finance Act, 2007, the assesses were liable to pay the
service tax on indivisible/composite works contracts is quashed and
set aside - Finance Act, 2007.
Doctrines of precedents and Stare decisis – Relevance and
significance of – Discussed.
Disposing of the appeals, the Court
HELD:
Per M. R. SHAH, J.
1.1 The relevance and significance of the principle of stare
decisis have to be kept in mind and that in law, certainty,
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SUPREME COURT REPORTS
[2022] 17 S.C.R.
consistency and continuity are highly desirable features.The
judgment of this Court in the case of Larsen and Toubro Limited
has stood the test of time and has never been doubted earlier.
The said decision has been followed consistently by this Court
as well as by various High Courts and the Tribunals. Therefore,
if the prayer made on behalf of the Revenue to reconsider and/or
review the judgment of this Court in the case of Larsen and Toubro
Limited is accepted, in that case, it would affect so many other
assesses in whose favour the decisions have already been taken
relying upon and/or following the decision of this Court in the
case of Larsen and Toubro Limited and it may unsettle the law,
which has been consistently followed since 2015 onwards. There
are all possibilities of contradictory orders. Therefore, on the
principle of stare decisis, the judgment of this Court in the case
of Larsen and Toubro Limited, neither needs to be revisited, nor
referred to a Larger Bench of this Court as prayed, i.e., after a
period of almost seven years and when no efforts were made to
file any review application requesting to review the judgment on
the grounds, which are now canvassed before this Court. [Para
10.5.1, 12][899-B; 906-D-G]
*Commissioner, Central Excise and Customs, Kerala Vs.
Larsen and Toubro Limited, (2016) 1 SCC 170 : [2015]
8 SCR 1046 - relied on.
1.2 At this stage, it is required to be noted that one of the
appeals being Civil Appeal No. 6523 of 2014 filed by M/s. G.D.
Builders is against the decision of the Delhi High Court in the
case of G.D. Builders Vs. Union of India. It is to be noted that the
said decision of the Delhi High Court in the case of G.D. Builders
has been specifically overruled by this Court in the case of Larsen
and Toubro Limited. The decision of the Delhi High Court in the
case of G.D. Builders has been considered by this Court in the
case of Larsen and Toubro Limited and ultimately, this Court opined
that the decision of the Delhi High Court in the case of G.D.
Builders is in fact contrary to a long line of decisions. It is further
specifically observed and held that the decision of the Delhi High
Court in the case of G.D. Builders is wholly incorrect in its
conclusion that the Finance Act, 1994 contains both the charge
and machinery for levy and assessment of service tax on
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indivisible works contracts. It is reported that while deciding the
group of matters in the case of Larsen and Toubro Limited, the
papers 

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