Case Law Details
Kumar Builders Vs Commissioner of Service Tax (CESTAT Chandigarh)
CESTAT Chandigarh held that re-classification from ‘Commercial or Industrial Construction Services’ to ‘works contract service’ justified as contract and VAT registration proves that contract is work contract service.
Facts- The appellants were providing Commercial or Industrial Construction Services and have been registered for the same; the appellants have paid service tax for the period April, 2007 to September, 2007 under the said Service and from June, 2007 onwards have discharged service tax under Works Contract Composition scheme.
The Department was of the opinion that the appellants have re-classified the services rendered by them from ‘Commercial or Industrial Construction Services’ to ‘works contract service’ even when there was no dispute about the classification; in view of the CBEC Circular No. 98/2007-ST dated 04.01.2008, it was not open for the appellants to re-classify or existing service after 01.06.2007.
A show cause notice was issued and was confirmed by Order-in-Original; service tax of Rs. 19,17,496/- was confirmed along with interest and penalties were imposed. Commissioner (Appeals) upheld the Order-in-Original vide impugned order.
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