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2015 (12) TMI 218 - AT - Service TaxDemand of service tax - Composition scheme - Works Contract Service - Held that:- There is no violation of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007. Rule 3 of the Rules require that the option to pay tax under composition scheme should be exercised before payment of Service Tax. It is seen that the registration under Works Contract Service was taken on 29.06.2007 and the Service Tax was paid on 5th/6th July, 2007. In view of this fact as well as the fact that under Rule 4 of Service Tax Rules the registration may be applied for within 30 days of commencement of business, the show-cause notice has no basis. The adjudicating authority proceeded to pass the Order on a completely fresh ground and therefore the order is liable to be set aside on this ground alone. The Commissioner correctly placed reliance on various judgements such as Godrej Industries Ltd. Vs. CCE, Mumbai [2008 (7) TMI 83 - SUPREME COURT ] and Tribunal decision in the case of Dhampur Sugarmills Ltd. Vs. CCE, Meerut [2010 (8) TMI 365 - CESTAT, NEW DELHI]. On the other hand the reliance placed by Revenue in case of CCE, Jaipur Vs. Ashoka Industries [2011 (1) TMI 414 - CESTAT, NEW DELHI] is out of context. In the case of Ashoka Industries the dispute was regarding production of a certificate to avail the benefit of Notification No. 108/95 CE. In that context it was held that as the basic issue is discussed in the show-cause notice, the order cannot be caused on some minor point. But in the present case the issue in the show-cause notice and the Order are different. Revenue has not even cited the details of the old contract and the new contract and compared the two to come to the conclusion that they were same and the change of contract was not a bonafide act. - Decided in favour of assessee.
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