2017 (1) TMI 656

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....pellants and it was felt that the appellant did not discharge service tax liability properly during the period 2005-2006 to 2010-2011. Accordingly, proceedings were initiated against the appellant, which resulted in the impugned order. The case against the appellant is that they have rendered service under the category of Interior Decorator s Service during the above period and did not discharge full service tax liability on the considerations received. They have also availed abatement under Notification No.1/2006 dated 1.3.2006 and Composition Scheme under Works Contract Service. The Original Authority found that the appellants are liable service tax under Interior Decorator s Service during the period in dispute and accordingly, the tax d....

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....side of the case before arriving at the conclusion on best judgement. (d) The contracts which are clearly composite in nature cannot be bifurcated for service tax levy. The Works Contract Service, as a new taxable entry, was introduced only w.e.f. 1.6.2007. The Hon'ble Supreme Court in Larsen & Toubro Ltd.  2015 (39) STR 913 (SC) clearly held that no service tax can be levied on Composite Works Contract prior to that date. (e) Denial of Composition Scheme under Works Contract is without any justification . The appellants opted for the said scheme right from 1.4.2011 prior to the payment of service tax. (f) The benefit of Section 67(2) for cum-tax valuation has not been considered by the Original Authority. ....

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....at the Original Authority should have examined the terms of each one of the work order before arriving at the conclusion regarding classification of the service rendered by the appellant. Prima facie, we find that the appellants were engaged in various civil works involving supply of materials with reference to preparing the building premises in a particular manner. The work involved are wood frame beveling, partition, lamination, fabrication, door, fixings, plumbing, sanitary work, ceramic work and many such activities. We could not find any indication regarding advice, consultancy, etc. with reference to planning, design or beautification of space. We note that "Interior Decorator s Service" in terms of statutory definition deals more wit....