Case Law Details
Western Corrosion Controller Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CBEC clarified vide letter DOF No. 334/1/2008- TRU dated 29.02.2008 that if VAT is paid under the category of Works Contract then the service should be classified as works contract services.
In the instant case while the appellant has submitted the challans under which VAT has been paid but it cannot be ascertained from the said challans if the VAT has been paid under category of ‘Works Contract’. While the registration document shows the appellant was registered under works contract with Sale tax authorities. The learned counsel could not establish from the said records that the sales tax or VAT was paid under the head of works contract service though prima facie is claim appears to be correct.
In view of the above the impugned order is set aside and the matter is remanded to the Original Adjudicating Authority to ascertain if the VAT/Sales tax has been paid for all the contracts under the category of works contract. If the appellant has paid VAT/Sales Tax under the head of Works contract then the service would fall under the category of Works Contract Service. No demand under the category of Commercial & Industrial Construction Service can be confirmed. Moreover, in that case the demand of duty for period prior to 01.06.2007 too cannot be confirmed as at material time the works contract service was not taxable.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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