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2017 (12) TMI 835 - AT - Service TaxComposition scheme - whether appellant is eligible to composition scheme under Rules, 2007? - Held that: - Admittedly, the appellants are liable to Service Tax for the work executed in pursuance of the impugned contract only w.e.f. 01/06/2007 as such any payment of Service Tax prior to 01/06/2007 will not bar the appellants from following the procedure as available under 2007 Rules. Admittedly, separate letter of intimation was not filed for availing the said scheme. However, from the date of introduction of works contract service the appellants have started discharging service tax at the rate of 2 per cent availing the procedure under 2007 Rules - the appellants are entitled for Composition Scheme in the present case. With reference to correct rate of duty to be followed under the Composition scheme we note that there is no dispute that the appellants have to discharge Service Tax either at 2 per cent or at 4 per cent depending on the effective rate of duty applicable during the period of providing service. The appellant are not contesting this issue. Any short payments because of adopting lower rate are to be verified by the jurisdictional authorities for correct quantification. Appeal allowed - decided in favor of appellant.
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