2017 (12) TMI 835

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... From January, 2007 the appellants were registered with the department and discharged Service Tax under the category of Commercial or Industrial Construction Service. After introduction of 'Works Contract Service' w.e.f. 01/06/2007 they started paying Service Tax categorizing the service under Works Contract Service and availing composition rate as per Works Contract (Composition Scheme For Payment of Service Tax) Rules, 2007. The revenue objected to the said payment on the ground that the appellant cannot change the classification of service, midway. The Composition scheme will not be available to an ongoing contract on which service tax has been paid prior to 01/06/2007 under a different classification. The plea of the appellant that even....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r Composition scheme during 01/03/2008 to 31/03/2008 the LD. Counsel submitted that though the impugned order mentions about difference in rate between 2 per cent to 4 per cent, the quantification has been made taking 12 per cent as the rate. He admitted that the changed rate of duty for composition scheme after enhancement to 4 per cent is rightly due and they did discharge the same. This can be verified by the authorities. 4. Regarding exercising the option under 2007 Rules, he submitted that with the introduction of Works Contract Service with reference to an ongoing contract they have started paying Service Tax availing the composition rate. For this contract, tax liability arises only w.e.f 01/06/2007 as such for the Work Contract the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... following the procedure as available under 2007 Rules. Admittedly, separate letter of intimation was not filed for availing the said scheme. However, we note that from the date of introduction of works contract service the appellants have started discharging service tax at the rate of 2 per cent availing the procedure under 2007 Rules. The Tribunal in the case of ABL Infrastructure Pvt. Ltd., 2015 (38) STR 1185 (Tri.Mumbai) held that when the appellants started paying tax under Works Contract Service availing the Composition scheme and reflected the rate in statutory returns ST-3 filed before the Department the same should satisfy the condition of exercising option. The Tribunal recorded that the substantial benefit cannot be denied for pr....