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2020 (12) TMI 282 - CESTAT CHENNAIValuation - Paying service tax at full value instead of at concessional value - whether the assessee is correct in discharging service tax on gross amount charged under Section 67 of the Finance Act, 1994 after availing CENVAT credit on inputs or whether they have to pay service tax under Rule 2A(ii)(B) of Service Tax (Determination of Value) Rules 2006 as assessed by the department? - HELD THAT:- The taxable service in the works contract is only the service portion and not the value of the goods involved. Since there is an element of transfer of property of goods involved (sale) while providing the works contract service which may always not be easy to segregate. Service tax (Determination of Value) Rules, 2006 would help to determine the value of service portion in the execution of works contract. On bare perusal of the provisions of law, it would show that section 67 is the charging section which lays down the liability to pay service tax on the consideration received for providing taxable service. Rule 2A provides for a mechanism to chalk out that part of the consideration in a WCS which can be subjected to service tax. - the discharge of service tax liability at full rate by the appellant by applying the provisions of section 67 of the Finance Act, 1994 cannot be called in question by the Revenue The issue with regard to whether assessee is eligible to avail CENVAT credit by discharging service tax under section 67 having been held in favour of the assessee, consequently, the appeal filed by the department alleging wrong availment of credit is without any merits. Time Limitation - HELD THAT:- The issue is in the nature of interpretation of provisions of law. The very same issue was under litigation and issue is held in favour of assessee which has been accepted by department. The assessee has indeed discharged service tax as determined under section 67. There is no evidence of deliberate act of intention to evade service tax - the demand raised invoking extended period cannot sustain. The assessee succeeds on the issue of limitation also. Appeal allowed - decided in favor of appellant.
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