2011 (7) TMI 560 - AT - Service Tax

Refund claim - as per assessee when works contract service was brought under the tax net effective from 01/06/2007 the service provided by them come under the category of works contract and not under the category of construction of commercial complexes - Held that - The issue involved is the rate of service tax liable to be paid by the respondent/assessee. As per the Section 35D (3) of the Central Excise Act, 1944 made applicable to service tax, when the rate of tax or the value of service rendered is one of the issues involved, then the matter has to be heard by a Division Bench. Accordingly, the registry is directed to place this matter before the Division Bench for consideration and disposal.

Summary

The Appellate Tribunal CESTAT, Mumbai ruled on a case involving a refund claim of Rs.3,15,254 paid by M/s.Nakshtra, Pune for service tax on construction activities. The issue was whether the service fell under "construction of commercial complexes" or "works contract." The matter was referred to a Division Bench as the rate of tax was in question under Section 35D (3) of the Central Excise Act, 1944.