Vaishno Associates – Order dated 6th March 2018 in Appeal No. – ST/57730/2013 – DB

No denial of the option opt by the Assessee for composition when form of intimation is itself not available.

  Facts:

  • The activity carried out by the assessee is in the nature of Erection, Commissioning or Installation and for the disputed period, e., 2008-09 to 2009-10.
  • The assessee claimed that it was entitled to make payment of service tax under the Works Contract Composition Scheme notified under Notification No. 32/2007-ST, dated 22-5-2007.
  • The assessee was denied the option to pay tax under composition scheme by the Adjudicating Authority for the sole reason that the appellant has failed to file any intimation opting for the payment of Service Tax under the Composition Scheme.

   Held:

  • It was concluded that there is no justification for denying the benefit of payment of Service Tax under the Works Contract Composition Scheme.
  • It was held that the Revenue’s main objection is absence of option exercised by the assessee before they started paying duty under the works contract. However, the assessee had applied for registration under works contract, and the same amount would amount to exercise of option in the absence of any format laid in the said rule for exercising said option.

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