TMI Blog2015 (7) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... - There can be no doubt that the classification of service is to be determined in terms of the nature of service rendered vis-à-vis the definition of various services as applicable on the date of rendition of service. The Board’s circular dated 4-1-2008 is in disharmony with law to the extent it holds that with effect from 1-6-2007 the classification cannot be changed for ongoing projects even if the service rendered is more specifically covered thereunder. Thus even if the classification of service prior to 1-6-2007 in respect of ongoing contracts was under CICS/CCS, the same would be classifiable as works contract service (WCS) with effect from 1-6-2007 if the service rendered was more specifically covered thereunder and if the classifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the composite contracts executed with effect from 1-6-2007 on the ground that these were ongoing contracts and at the same time the benefit of 67% abatement under Notification No. 1/2006-S.T. has also been denied to them on the ground that they had taken Cenvat credit of input services. They have contended that they cannot be deprived of the Composition Scheme and/or the benefit of Notification No. 1/2006-S.T. 2. The ld. AR supported the impugned order, stating that classification of service cannot be changed in respect of ongoing contracts. 3. Heard both sides. In view of the nature of the issue involved, with the consent of both sides, we take up the appeal itself waiving the requirement of pre-deposit. 4. It is seen that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s works contract service (WCS) with effect from 1-6-2007 if the service rendered was more specifically covered thereunder and if the classification is held to be under WCS the benefit of Notification No. 1/2006-S.T. would not be applicable with effect from 1-6-2007 as the said notification is not applicable to works contract service. However, the benefit of Rule 2A of the Service Tax (Determination of Value) Rules, 2006 or any other applicable notification can be claimed by the appellants subject to producing the required evidence. As regards denial of the benefit of abatement under Notification No. 1/2006-S.T. on the ground that the appellants had taken Cenvat credit in respect of input services, it is to be pointed out that the said no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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