TaxTMI 
TaxTMI 
2017 (11) TMI 941
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....d commissioning of various power projects in terms of agreements entered into with different clients. The dispute in the present appeals relates to five such contracts. The period involved is from 10.9.2004 to 31.3.2012 covered in four proceedings. The appellants were registered with the department and were discharging service tax on these contracts. In respect of some of the contracts, they have identified the civil construction activity and after availing abatement of 67% discharged service tax under commercial or industrial construction service. For erection and commissioning of various structures and machinery, they have discharged service tax under erection and commissioning or installation services on full value. They have availed cen....
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.... appellant for these contracts, he submitted that they have by following the above methodology, discharged service tax which works out to higher than the liability that will arise if the service tax liability on such contracts are to be paid only from 1.6.2007 availing composition scheme as per 2007 Rules. (d) The composition scheme for the works contract service liable to tax w.e.f 1.6.2007 cannot be denied to them as they have fulfilled the required condition as per 2007 Rules. Though they have discharged service tax under different tax entry, the tax liability when reworked as per the decision in L&T (supra), it will be clear that they have discharged more than the statutory liability. (e) He contested the imposition of....
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.... by the Hon'ble Apex court in the case of L&T (supra) makes it clear that there can be no service tax liability on the appellant for such composite works contract prior to 1.6.2007. 6. The appellants themselves in respect of the contracts discharged service tax by splitting them into construction based on rate schedule for construction activity and erection activities separately. This was objected to by Revenue. We note that the contracts executed are for a purpose of power generation units. However, in respect of at least a few of the contracts, there is a separate Letter of Indent and Agreement specifically for erection, testing and commissioning of power station on turnkey basis and another one separately for civil construction ac....
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....sarily the application of composition scheme to such contracts cannot be denied only on the ground that there was no option exercised during the material time. 9. With reference to the reliance placed by Revenue on Nagarjuna Constn. Co. Ltd. (supra), we find that the facts of the present case are on a different footing. In the present case, the tax liability of appellant for the period 1.6.2007 will not arise in case of works contract. For the period post-1.6.2007, necessarily the tax liability is determined belatedly under works contract service. Hence the question of option has no relevance as neither appellant nor the Revenue classified the service at the material time under 'Works Contract Service'. The availability of compos....