2019 (6) TMI 685

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....e". The Registration taken for "industrial and construction service" was also endorsed for "works contract service" since 06.08.2007 as per the provisions of Section 65 of Finance Act, 1994. The Department, during the course of scrutiny of the appellants ST 3 returns for the period April, 2007 to Sept, 2007, noticed that the appellant short paid the Service Tax amounting to Rs. 35,06.940/. The basic premise on which the short payment of Service Tax was demanded under section 73 of the Finance Act, 1994, was that it had wrongly availed the benefit of Notification No. 1/2006 dated 01.03.2006 under which abatement of 67% was availed from the amount charged by it on the services provided to their customers under the category of 'Commercial or I....

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.... labour and service charges for construction services were involved and therefore, the activity was rightly classifiable under 'work contract service'. Learned Advocate submitted that since the 'works contract service' was introduced for levy of Service Tax for first time since 01.06.2007, every 'works contract service' which was in progress before the activity came under the Service Tax net, needed to be treated as a new contract and would be eligible for opting for the composite scheme under work contract service. The learned advocate has submitted that they have opted of availing the benefit of notification No. 32/2007 dated 22.05.2007 for work contract composition scheme by informing the Department by a letter dated 22.06.2007. The appe....

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....fit of Composition Scheme under 'works contract service' for payment of Service Tax. It is also a matter of record that the appellant gave intimation for availing the benefit of the Notification No. 32/2007 to the Department on 22.6.2007, much before filing its ST 3 return for the services undertaken by it during the relevant period. 6. As per the Supreme Court judgment in the case of Commissioner of Central Excise & Cus, Kerala vs. Larsen and Toubro Ltd. Reported in 2015 (39) STR 913 (SC), the activity involving labour and service charges as well as supply of goods and material will rightly be classifiable under the 'Work Contract Service' as the work contract service was introduced for levy of Service Tax with effect from 01.06.2007. T....