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2015 (11) TMI 329 - AT - Service TaxWorks contract service - composition scheme once opted, can be changed or not - Held that:- Appellant had opted for discharge of service tax liability on the services rendered by them under the category of works contract by opting to pay the service tax under Composition Scheme. The provisions of Rule 3 (1) of the said Composition Scheme would be applicable in this kind of option to discharge the said service tax liability on works contract - Rule 3(1) starts with an non-obstante clause which indicates that the provision of Section 67 may not be applicable in this case. It is very clear that the said scheme is an optional one and once an assessee opts to discharge the service tax liability under the Composition Scheme, he has to follow the provisions in the said Composition Scheme which will not be bound by the provisions to Section 67 of the Finance Act, 1994. Composition Scheme being optional, having opted for it, appellant has no locus standi to revert back to workout the gross value charged for the services rendered. Factually also we find that the appellant had charged an amount to the service recipient as per the contract entered by them, which would be that the service tax liability under works contract services needs to be discharged on the gross amount charged i.e. entire gross amount charged for the works contract and there cannot be any deduction that can be claimed. - on merits appellant has no case and the differential tax liability as worked out by the adjudicating authority along with interest is correct and needs to be upheld - However, imposed penalty is set aside - Decided partly in favour of assessee.
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