TaxTMI 
TaxTMI 
2018 (8) TMI 28
X X X X Extracts X X X X
X X X X Extracts X X X X
....r' services. On perusal of ST-3 returns, it appeared to the department that appellant instead of paying service tax @ 12% on the value of taxable service, they had discharged service tax @ 2% after treating their service as 'works contract service' and availing concessional rate of 2% under Rule 3 (1) of Works Contract (Compensation Scheme for Payment of Service Tax) Rules, 2007 (hereinafter referred to as Compensation Scheme). Accordingly, show cause notice dt. 09.09.2008 was issued for the period April 2007 to March 2008, alleging total service tax liability of Rs. 84,565/- and after taking into account the amount of Rs. 14,013/- already paid by the appellants, proposed a demand of Rs. 70,552/- with interest and imposition of penalty unde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ervice tax exemption of Rs. 8 lakhs during the impugned periods. Hence there would not be any tax liability on them under any service tax category. However, the for the amounts of Rs. 14,013/- and Rs. 20,919/- already collected by them and paid to the department, they are not contesting the same. 4. On the other hand, Ld. A.R supports the impugned orders. He submits that the work performed by them was related to planning, design and beautification of space and hence it squarely falls within the scope of 'Interior Decorator Service‛. He also submits that even if the activity has to be considered as 'works contract', the procedural requirement for claiming Compensation Scheme was not followed by the appellants. 5. Heard both sides....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The appellants cannot then be slotted into the category of Interior Decorator Service. We also find that the case laws relied upon by the Ld. Advocate (supra) also support their contention. The relevant portion of the Tribunal's decision in the case of Divekar Associates Vs CCE Pune-III (supra) are re-produced below : "6. Undisputedly the facts are that the appellants are engaged in the business of manufacturing furniture as per the design, drawing and specification provided by the client. They also undertook the work of modular partition and the activities were executed under the supervision through sub-contractor, manufacture all types of furniture at site out of their own raw material as per the requirement and design provided ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (ii) Installation of - (a) electrical and electronic devices including wiring or fitting therefor; or (b) plumbing, drain laying or other installations for transport of fluids; or (c) heating, ventilation or air-conditioning including related pipe, work, duct work and sheet metal work; or (d) thermal insulation, sound insulation, fire proofing or water proofing; or (e) lift and escalator, fire escape staircases or travelators; or (f) such other similar services; 8. The appellants are engaged in the business of manufacturing furniture as per the design, drawing and specification provided by their client. They also undertook the work of modular partition and the activities w....