https://www.taxtmi.com/caselaws?id=191292 Under the works contract composition scheme, the tax rate applicable on the date of valid exercise of option governs the contract, and a later enhancement cannot retrospectively alter an already opted-in contract. However, the assessee must validly exercise the option before the enhanced rate takes effect to retain the earlier rate. On the facts, the first discernible exercise of option was on 26 March 2008, after the rate had increased to 4%, so the assessee could not claim the earlier 2% rate. The demand based on the enhanced rate was therefore sustained. en-us Fri, 01 Jul 2016 00:00:00 +0530 Thu, 04 Jan 2018 16:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191292 Under the works contract composition scheme, the tax rate applicable on the date of valid exercise of option governs the contract, and a later enhancement cannot retrospectively alter an already opted-in contract. However, the assessee must validly exercise the option before the enhanced rate takes effect to retain the earlier rate. On the facts, the first discernible exercise of option was on 26 March 2008, after the rate had increased to 4%, so the assessee could not claim the earlier 2% rate. The demand based on the enhanced rate was therefore sustained. Case-Laws Service Tax Fri, 01 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191292