TaxTMI 
TaxTMI 
2024 (3) TMI 454
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....ted contract. They did not pay any Service Tax during the period October 2007 to May 2007, since works contract was not exigible to Service Tax. They applied for Service Tax Registration on 14/12/2007 for providing "fire security services". However, their Registration under ST-2 was issued as "Security Agency Service". They have taken up with the Department about this error. The officials asked them to continue with the same Registration and apply for addition of Fire Security Services being provided as Works Contract in the same registration. Accordingly, after the filing application on 09/06/2008, the Department has issued ST-2 amending Certificate on 16/4/2009 by including the "Works Contract Services". The Show Cause Notice was issued o....
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....elies on the case law of Heavy Engineering Corporation Ltd. Vs. Commr. of CGST & Central Excise, Ranchi, wherein this Bench has held that the service provided can be vivisected to confirm the demand under "Erection and Commissioning Service when the service provided is that of Works Contract. He submits that the Adjudicating Authority has confirmed the demand on 'Works contract' on the ground that the Appellants have not filed any letter opting to pay the Service Tax under composition scheme. On this issue, he relies on the case law of GE T&D India Ltd. Vs. Commr. of C. Ex. & S.T. Chennai-2020 (34) GSTL 176 (Mad.). In this case, the Hon'ble High Court of Madras held that the benefit cannot be denied merely because option was not conveyed by....
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.... position to show that VAT was being paid on the Invoices raised by them Therefore, he has held that in the absence of any evidence coming up towards payment of VAT, the Appellant would not be entitled for Works Contract Scheme in this case. Therefore, he justifies the confirmed demand. He further submits that in the entire confirmed demand with Service Tax @ 12%/10%/4%/2% with effect from 01/06/2007 is required to be paid. Without prejudice to the stand taken by the Revenue, in any view of the matter, the Appellant would be required to pay the Service Tax at least as per the rates applicable under Composition Scheme 5. We have heard both sides and perused the documents and cited case law. 6. We find that this Bench in the case of Heavy E....
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....the present Show Cause Notice was issued on 08/2/2010. 9. Admittedly, the Appellant's main business is to supply the Fire Equipment and erect and Commissioning the same in the premises. Therefore factually it gets proved that they were providing Works Contract Service only. If the Appellant is not paying VAT on the same, it is for the VAT Authority to take proper action against them. This cannot be the basis for confirmation of the demand by the Service Tax Authorities. Therefore, we hold that the confirmed demand on account of "Works Contract", wherein the benefit of composition was not given, is also required to be set aside on account of limitation. 10. In this case, as pointed out by the Learned AR, the Appellants have not paid the Se....