TaxTMI 
TaxTMI 
2019 (4) TMI 1688
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....nstruction services to M/s. Benzer Agencies Ltd., Jaipur. On being asked by the Audit party, whether they have deposited the service tax amount under the construction services on the advance amount received by them from the service recipient, it was informed by the appellant that they have already deposited service tax at the rate of 2.06 % availing the benefit of Notification No. 32/2007 dated 22.05.2007 by availing the benefit of composition scheme for work contract service. The Department is of the view that as per the requirement of Notification No. 32/2007 dated 22.05.2007, the appellant should have informed the Department prior to availing the benefit of composition scheme under the Work contract services for paying the service tax at....
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....that before availing the benefit of notification No. 32/2007, the appellant should have informed the Department before paying service tax at the reduced rate of 2.06% and before filing the service tax return. 3. It has been the contention of the learned advocate appearing for the appellant that they are registered with the VAT department for work contract service which also included the composite work contract service. It has further been argued that notification only stipulates that assessee has to inform the department but it does not require any permission from the department for availing the composite scheme for work contract wherein the reduced rate of service tax has been provided. Since they have paid the required composite work co....
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....epartment prior to filing of service tax return and also payment of service tax under the Composite Scheme. Relevant extract of the above mentioned decision are extracted hereinbelow: "6. The activity carried out by the appellant is in the nature of Erection, Commissioning or Installation and for the disputed period i.e. 2008-09 to 2009-10, the activity will also be covered under the category of Works Contract Service (WCS) which was introduced in the statute w.e.f. 01/06/2007. Under the WCS, the benefit of payment of Service Tax under the Composition Scheme was notified vide Notification No. 32/2007 ST dated 22/05/2007. The notification provides that the service provider is required to opt for payment of Service Tax under the Compositio....
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.... The above Rule requires that the provider who opts to pay tax under the Rule shall exercise such option prior to payment of Service Tax. We find force in the appellant's contention that the fact they had started paying tax under the Works Contract Composition Scheme is quite evident from the rate of tax reflected in the ST-3 returns. In any case, they had exercised option on 26-09-2007, the substantial benefit cannot be denied for procedural deficiency of delay in opting for Works Contract Service by a specific declaration under Rule 3. More so, whe no format has been prescribed for making/exercising an option nor has it been specified as to whom the option must be addressed. We agree that the fact of paying Service Tax at the compositi....