2013 (1) TMI 464

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..... Arul, Superintendent (AR) Per: Mathew John: The applicants are engaged in the business of supply and installation of electrical transmission towers to M/s. Power Grid Ltd. The appellants have a long term contract with them. On such services they have been paying service tax under the category of 'Works Contract' as defined under Section 65(105)(zzzza). Revenue was of the view that since the ap....

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....se of ABB Ltd. Vs. Commissioner of Service Tax, Bangalore - 2011 (24) STR 199 has held that works contract became taxable only from 1.6.2007 when the new entry was brought into force and prior to that date such service was not taxable. While arriving at this decision, the Tribunal relied on the decision of the Karnataka High Court in the case of Commissioner Vs. Turbotech Precision Engineering - 2....

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....mmissioning", they cannot avail the benefit of the new scheme. They also rely on Circular No. 128/10/2010- ST dated 24.8.2010. Para 3 of the Circular is reproduced below:-     "3. As regards applicability of composition scheme, the material fact would be whether such a contract satisfies rule 3(3) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007. Th....

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....igible for opting of the composition scheme." 5. We have considered arguments from both sides. The question whether Rule 3(3) of the said Rules will apply to a situation where an assessee is wanting to switch over to a new scheme is a debatable issue. It would appear that Rule 3(3) of the said Rules prohibits switching from works contract scheme to the other applicable entries during the currency....