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2010 (6) TMI 91 - ANDHRA PRADESH HIGH COURT
Works contract Service - option to avail composition scheme - Existing contracts commenced prior to 1.6.2007 - Circular No. 98/1/2008-ST dated 01-01-2008 - Held that: - . On a true and fair construction of Rule 3(3) of the 2007 Rules, it is clear that where in respect of a works contract service tax has been paid, no option to pay service tax under the composition scheme could be exercised. There is no ambiguity in this provision. The entitlement to avail the benefits of the composition scheme is only after an option is exercised under Rule 3(3) of the 2007 Rules and this provision specifically enjoins a disqualification forexercise of such option where service tax had been paid in respect of a works contract. To put it succinctly, where service tax has been paid in respect of a works contract, the eligibility to exercise an option to avail the benefits of the composition scheme under the 2007 Rules is excluded.