2024 (7) TMI 307

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....head 'Construction of Commercial Complex Service' by availing the abatement on the consideration received by them. After the onset of 'Works Construction Service' w.e.f. 01.06.2007, they started paying the Service Tax on composition basis. The Show Cause Notice was issued for the period October 2005 to January 2008. It was alleged that the Appellant have not filed their option letter for switching over from 'Construction of Commercial Complex Service' to 'Works Contract Service'. On the ground that they were still covered under 'Construction of Commercial Complex Service', the demand of Rs.17,01,573/- was raised. Similarly one more demand for Rs.10,53,869/- was raised. Apart from this, there was a demand of Rs.22,92,514/- on account of shor....

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....the confirmed demand of Rs.10,53,869/-, he submits that since the entire demand is based on the ground that the Appellant is required to pay the Service Tax under the 'Commercial Construction Service', whereas the appellants have discharged the Service Tax applicable on 'Works Contract Service', the same is not sustainable. 5. In respect of Rs.22,92,514/- taken as short paid in the Order-in- Original, he submits a copy of the C.A. Certificate certifying that the due to computation error, they have shown higher turnover in the month of March 2006 because of which, it gets reflected that Rs.22,92,514/- has been short paid. He submits that with documentary evidence, they would be able to prove that they have paid correct Service Tax pertain....

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.... Tax. We find force in the appellant's contention that the fact that 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 26.9.2007, 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, when 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 composition rate in the returns filed by them, is enough indication to show that they have opted for payment under the Works Contract Compo....