Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1176 - CESTAT NEW DELHIConstruction services - Commercial or Industrial Construction - Construction of Residential Complex Service - benefit of exemption under Notification No.1/06-ST dated 01.03.2006 - period 2006-07 to 2010-11 - Held that:- The appellant has admittedly provided construction services. After perusal of some of the contracts whose copies were submitted by the appellant, the adjudicating authority himself has recorded the conclusion that the services provided by the appellant will be classifiable under the category of Works Contract Service w.e.f. 01.06.2007 - In view of the decision of the Hon’ble Apex Court in the case of L & T [2015 (8) TMI 749 - SUPREME COURT], the demand of service tax for the period prior to 01.06.2007 is liable to be set aside. Demand beyond the normal period of limitation under section 73 of the Finance Act - Held that:- It is on record that the appellant was already registered with the Department for providing various services. They have also been filing ST-3 returns periodically in which they have declared the value of services provided and the fact that they were paying the Service tax under the category of commercial or industrial construction services, after availing the benefit of the Notification No.01/2006. The Department appears to have taken the view that the activities are more appropriately classifiable under the category of Works Contract Service, only during the course of audit of the records - there is no ground for alleging suppression - the demand for the period beyond the normal time limit is set aside on the ground of time bar. Benefit of Works Contract Service (Composition Scheme) - Held that:- The non-exercise of the option for payment of tax under the Composition Scheme cannot be held as a reason to deny the benefit of the competition scheme since it is in the form of only a procedural requirement - the appellant will be entitled to the Composition Scheme subject to fulfilment of the other conditions - the service tax liability of the appellant is required to be re-calculated after extending the benefit of Composition Scheme and after allowing them the cum-duty benefit. The demand for service tax beyond the normal period of limitation set aside - For the demand of Service Tax falling within the normal time limit, the services, already classified by the adjudicating authority under WCS, will be entitled to the benefit of the Composition Scheme. The demand, if any, is to be re-calculated with cum-tax benefit and the appellant will be entitled to the consequential benefit if any - appeal allowed by way of remand.
|