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2018 (7) TMI 1941 - AT - Central ExciseWorks contract services - interior contracting work on the basis of specific job/work orders awarded by its clients - composition scheme - HELD THAT:- The Appellant is duly registered as a works contractor under the VAT laws and discharged VAT on the gross receipts as evident from Quarterly Sales Tax Returns and the VAT Assessment Orders for the relevant period. The work orders enclosed by the Appellant as part of the Paper Book and the bills raised against them proves it beyond any element of doubt that these were indivisible composite work orders involving Therefore, in essence a composite works contract involving supply of both goods and services could not be vivisected for imposition supply of both goods and services. The Appellant intended to seek registration as a works contract service provider only, as evident from the application for STC Code filed alongwith the application for registration on 30 May 2007 coupled with the fact that even after the grant of registration under CICS, the Appellant was discharging service tax at the rate of 2% under the works contract composition scheme for payment of tax rules - no negative inferences can be drawn from the fact that registration was initially granted to the Appellant under the taxable category “Commercial or Industrial Construction Services. it is well settled that there is estoppel in law and the person cannot be saddled with a statutory liability which was never there on account of an inadvertent mistake committed by such person. We observe that the levy of VAT and service tax are mutually exclusive - thus, service tax cannot be demanded on the value of the works contract which has already suffered VAT. Appeal allowed - decided in favor of appellant.
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