2016 (9) TMI 371

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....of Rs. 8,57,69,568/- in running account bills and paid the Service Tax thereon under the category of Works Contract Service by opting for the composite scheme and the balance amount of Rs. 4,62,30,432/- remained to be adjusted on which service tax liability worked out to Rs. 18,67,340/-.  On being pointed out by the audit, the appellant paid the amount of Rs. 18,67,340/- along with interest (as on 20/03/2007) amounting to Rs. 8,64,987/- on 26/02/2009.  It was alleged that the appellant had suppressed the value of Rs. 4,62,30,432/- received as advance for the said project by not including the same in the ST-3 returns and had failed to discharge the service tax liability thereon under the category of Commercial or Industrial Constru....

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....hether the said mobilization advance was towards rendition of service or towards goods and therefore, the appellants paid service tax at the time of raising of running bills. He further argued that with the introduction of composition scheme under works contract services on 01/06/2007 there were lot of confusion regarding the eligibility and the Honble Apex Court in the case of Nagarjuna Construction Co. Ltd. - 2012 (28) STR 561 (SC) wherein the Hon'ble Supreme Court held that when the assessee has already paid tax, they could not change classification of composite service to avail option  under works contract service.  CBEC also vide Circular No.98/1/2008-ST dated 04/01/2008 clarified that ongoing projects are not eligible for c....