2016 (5) TMI 1076

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....ervice tax demand of Rs. 6,10,37,554/- for the period 01.03.2006 to 31.03.2008 was confirmed along with interest and penalty on the ground that:-  (i) The appellant had not included the value of the free supplies provided by the service recipient in the assessable value of the taxable service, and therefore, was not entitled to the abatement of 67% in terms of Notification No. 18/2005-ST/ 1/2006-ST but claimed the same.  (ii) It had taken cenvat credit on capital goods which would also disentitle it to the benefit of the said Notifications.  (iii) It availed of the benefit of Composition Scheme under works contract service w.e.f. 01.06.2007 which was not permitted as the projects for which the said ....

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....ojects for which impugned demand has been confirmed on account of denial of 67% abatement. 4. We have considered the contentions of both sides. 5. At the outset, it is pertinent to mention that CESTAT in the case of Bhayana Builders Pvt. Ltd. (Supra) has categorically held that for claiming the benefit of abatement under Notification No.18/2005-ST / 1/2006-ST, the value of free supplies of goods made by the service recipient need not be included. It is however true that the benefit of the said Notification is not available in case the cenvat credit on capital goods has been taken. We find that the appellant asserted during the adjudication proceedings that it had not taken any cenvat credit on capital goods in respect of the projects ....

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....e.f.01.06.2007 the appellant switched over to the Composition Scheme for payment of Service Tax under Works Contract Services (WCS) in respect of projects which were on going from prior to 01.06.2007. It has in effect been held by Supreme Court in the case of Nagarjun Construction Co. Ltd. vs. Govt. of India - 2012 (28) STR 561 (S.C.) that switch over to Composition Scheme w.e.f. 01.06.2007 is not permitted in respect of projects on going from before 01.06.2007. Further elaborate discussion on this point is not needed because the appellant has fairly conceded this point adding that on this account, the differential duty works out to Rs. 37,01,631/-which was paid during investigation itself. We, however, do not find any document or basis to ....