Case Law Details
Vaishno Associates Vs. C.C.E. & S.T.-Jaipur (CESTAT Delhi)
The activity carried out by the appellant is in the nature of Erection, Commissioning or Installation and for the disputed period i.e. 2008-09 to 2009-10, the activity will also be covered under the category of Works Contract Service (WCS) which was introduced in the statute w.e.f. 01/06/2007. Under the WCS, the benefit of payment of Service Tax under the Composition Scheme was notified vide Notification No. 32/2007 ST dated 22/05/2007. The notification provides that the service provider is required to opt for payment of Service Tax under the Composition Rules prior to payment of Service Tax in respect of the Works Contract. But on perusal of the record of the present case we note that the appellant has opted for such Composition Scheme after they started making payment of Service Tax under the Works Contract Scheme. For the sole reason for failure to file the intimation prior to payment of Service Tax under WCS, the Adjudicating Authority has denied the benefit of Composition Scheme.
In this connection appellant relied on the Tribunal’s decision in the case of ABL Infrastructure Pvt. Ltd. V/s CCE, Nashik reported in 2015 (38) STR 1185 (Tri.-Mumbai) in which the Tribunal has held that the assessee will be entitled to the benefit of the Composition Scheme even if the option, there or, is exercised at a later date.
By following the decision of the Tribunal in the above case we conclude that there is no justification for denying the benefit of payment of Service Tax under the Works Contract Composition Scheme.
FULL TEXT OF THE CESTAT ORDER IS AS FOLLOWS:-
Please become a Premium member. If you are already a Premium member, login here to access the full content.
