TaxTMI 
TaxTMI 
2025 (6) TMI 451
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....e impugned Order--in--Original are that the appellant is engaged in the activity of services relating to interior decoration in respect of Commercial or Industrial or Residential buildings, which according to the appellant were in the nature of Completion and Finishing services involving the services like glazing, plastering, painting, flooring, wall tiling etc. which according to them was under Works Contract Service (WCS). In the Order--in--Original, we see the admission by the Commissioner as to the fact of the appellants raising the invoices on its customer in which it had remitted VAT on 79.85% of the value of the invoice on a notional basis and service tax on 20.15% of the remaining value. That was felt to be not in order since the se....
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.... appellant's own case for an earlier period wherein this Bench vide its Final Order No.41241/2019 dated 31.10.2019 has considered the binding judicial precedence of the Hon'ble Supreme Court in the case of Safety Retreading Co. (P) Ltd. Vs Commissioner of Central Excise, Salem reported in 2017 (48) S.T.R. 97 (SC) and other rulings of CESTAT Benches, to hold that the calculation of payment of service tax by the appellant was in order. The relevant observations are as under : "7.1 The second issue is with regard to the method of calculation in arriving at the value of taxable service for payment of Service Tax under Works Contract Service. For better appreciation, the relevant provisions prior to 01.07.2012 are noticed as under : "2A. Det....
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....latable to supply of labour and services; and (viii) profit earned by the service provider relatable to supply of labour and services; (ii) Where Value Added Tax or sales tax, as the case may be, has been paid on the actual value of transfer of property in goods involved in the execution of the works contract, then such value adopted for the purposes of payment of Value Added Tax or sales tax, as the case may be, shall be taken as the value of transfer of property in goods involved in the execution of the said works contract for determining the value of works contract service under clause (i)." The relevant provisions after 01.07.2012 are also reproduced as under : "2A. Determination of value of service portion in the execution of a....
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....such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property, service tax shall be payable on sixty per cent. of the total amount charged for the works contract;" 7.2 Perusal of these provisions, as shown above, would indicate that Rule 2A continues after 2012 also and the Composition Scheme has been replaced and inbuilt in the Rules itself in a different form whereby the service portion in Works Contract is specified at a percentage of gross value based on the nature of activities on which normal Service Tax rate applies instead of a lower composition rate on the gross value under the erstwhile composition scheme. Thus, the principle of valuation of taxable service under the amended pro....