TaxTMI 
TaxTMI 
2024 (6) TMI 844
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....ber 2008 to September 2009. The appellant exercised its option to pay Service Tax under Rule 3 of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 vide its letter dated 12th January, 2008, according to which it would discharge its Service Tax liability by paying an amount equivalent to 2% of the gross amount charged for works contract instead of the rate prescribed under Section 66 of the Finance Act, 1994. The rate of Service Tax under the said scheme was revised from 2% to 4% with effect from 01.03.2008 vide Notification No. 07/2008-S.T. dated 01.03.2008. 3. On the basis of scrutiny of the S.T.-3 returns filed by the appellant for the period from October 2008 to September 2009, it was revealed that the appel....
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...., it is the contention of the appellant that the option availed by the appellant cannot be withdrawn during the pendency of the works contract and thus, the impugned demands are not sustainable. 6. On the other hand, the Revenue is of the view that as per Notification No. 07/2008-S.T. dated 01.03.2008, the rate of tax has been increased under the Composition Scheme and therefore, the appellant is liable to pay Service Tax at the rate of 4%. 7. Heard the Ld. Authorized Representative for the Revenue and perused the record. 8. We find that the appellant has opted in advance for payment of Service Tax under Rule 3 of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 and as per the said Rules, if an assessee opts....
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....e service tax shall be paid on or before 6th of every month following the month the payments are received for such taxable service. Rule 7 thereof postulates that the return shall be filed on half yearly basis on or before 25th day of the month following the particular area. 15. In the present case, the service tax was paid at the rate of 2% and was duly received by the department prior to 1-3-2008. The expression 'opts to pay service tax under these rules' cannot be construed and mean the filing of the return and the payment would sufficiently constitute the exercise of option under composite scheme. Apart from relying upon Rules 6 and 7 of the Service Tax Rules there is no iota of piece of paper produced before this Court that an option....