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2015 (11) TMI 476 - AT - Service TaxCommercial or industrial construction service - Works contract service - Payment of tax under Composition scheme without prior opting the scheme - Held that:- Appellants were not discharging their service tax liability under the category of works contract. The provisions of Rule 3(3) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 is to the effect that the provider of taxable service who opts to pay service tax under these Rules shall exercise such option in respect of a works contract service provided to payment of service tax in respect of the said works contract and the option so exercised shall be applicable for the entire works contract and shall not be withdrawn until the completion of the said works contract. As such, it is seen from the said Rule that the option has to be exercised by the assessee who wants to discharge the service tax liability under the said category. In the present case, it was never the appellant who opted to pay under works contract but the Revenue required them to pay the tax under the works contract. In such a scenario, the question of assessee exercising any option before discharging the tax under the category of works contract does not arise at all. Such an view adopted by the adjudicating authority is neither appropriate nor legal inasmuch as the same cannot be adopted as a bar to the Revenue's own stand of requiring the appellant to pay tax under the category of works contract. - during the adjudication proceedings, had placed on record a detailed quantification showing the value of the materials used by them and the resultant value of the services. If the adjudicating authority was of the view that the appellant should also place relevant bills/invoices etc. on record, he was within his rights to call for the same instead of confirming the demand on the total value of the works contract, without any notice to the appellant - Impugned order is set aside - Decided in favour of assessee.
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