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2016 (10) TMI 620 - AT - Service TaxClassification of service - commercial or industrial construction service or works contract service - works contract service wef 1/6/2007 - denial of the benefit of N/N. 12/2003-ST dated 20/6/2003 and benefits of Rule 2A of the Service Tax Determination of Valuation Rules 2006 - The appellant was paying service tax prior to the introduction of Works Contract Service [WCS] (w.e.f. 01/6/2007) under Commercial or Industrial Construction Service. After the introduction of the works contract service they have sought re-classification of their service under the newly introduced WCS - Held that: - the decision in the case of Commissioner of Central Excise, Kerala, vs. L & T Ltd. [2015 (8) TMI 749 - SUPREME COURT] relied upon where it was held that such contracts should be classified only under works contract scheme w.e.f. 01/6/07. Further questions which arise are (i) whether the appellant will be entitled to the benefit of composite scheme and (ii) whether they will be entitled to exclude the value of goods supplied under Rule 2A of the Service Tax Determination of Valuation Rules - this issue stands decided in the case of Ahluwalia Contracts (I) Ltd. vs CCE, Noida [2015 (7) TMI 855 - CESTAT NEW DELHI] where it is held that the issue is not res integra and this case relied upon. They will be entitled to re-classify their services under Works Contract Scheme 01/6/07. They will also be entitled to the benefit of Rule 2A of the Service Tax Determination of Valuation Rules. The issue needs to be remanded back to the original Adjudicating Authority for evaluating the claim of the appellant to the quantum of the benefit entitled to them under Valuation Rule 2A of the Service Tax Determination of Valuation Rules - matter remanded to adjudicating authority - appeal allowed.
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