TaxTMI 
TaxTMI 
2016 (1) TMI 655
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....ntract (WC) along with interest and penalties was confirmed. The aforesaid demand arises on four grounds:- SI. No. Grounds of Demand Impugned demand of Service Tax (Rs.) 1. Mobilisation advance paid by clients 19,58,81,601.00 2. DMRC IT Park Contract Turnover 7,85,15,965.00 3. Rejection of Abatement option 55,18,93,566.00 4. Rejection of Composition Option 42,41,97,679.00 Total 1,14,04,88,811.00 2. Ld. Departmental Representative, on the other hand, supported the impugned order reiterating the grounds/ reasons contained therein. 3. As both sides agreed that the appeals themselves can be taken up at this stage, we proceed to do so waiving the requirement of pre-deposit. 4. The abatement option under Notifi....
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.... any amount received towards the taxable service before, during or after provision of such service". Thus, the service tax was payable as and when the mobilisation advance was received with reference to the date of receipt of mobilisation of advance. However, the appellant has rightly contended that mobilisation of advance received in respect of such contracts which were executed prior to 01.06.2007 will not be liable to service tax. It however conceded that there could be contracts signed prior to 01.05.2007 which were not completed before 01.06.2007 and where mobilisation advance was received in respect thereof on or after 16.06.2005. For such contracts, the service tax will be payable on mobilisation advance relatable to service rendered....
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....g for composition scheme from 01.06.2007 in respect of on-going works contracts cannot be called mid-way migration even if service tax was paid thereon during the period prior to 01.06.2007 as no service tax was payable prior to 01.06.2007. In respect of contracts entered into on or after 01.06.2007, the appellant is obviously eligible to opt for the compositional scheme. However, if on any contract entered into prior to 01.06.2007 the appellant did not opt for composition scheme with effect from 01.06.2007 or on contracts entered into on or after 01.06.2007, it did not opt for composition scheme from the very beginning, it would be disentitled to opt for compositional scheme in the light of the judgement in the case of Nagarjuna Constructi....