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TMI Blog2013 (1) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... - business of supply and installation of electrical transmission towers - Erection and Commissioning - Section 65(105)(zzd) - Revenue argued that new scheme applicable only in respect of a new contract commencing after 1.6.2007 and for old contract for which they were paying service tax under "Erectioning and Commissioning", they cannot avail the benefit of the new scheme - Held that:- It would a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants have a long term contract with them. On such services they have been paying service tax under the category of Works Contract' as defined under Section 65(105)(zzzza). Revenue was of the view that since the appellants were earlier discharging service tax on the said contract under the category or "Erection and Commissioning" as defined under Section 65(105)(zzd), they could not have switched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d prior to that date such service was not taxable. While arriving at this decision, the Tribunal relied on the decision of the Karnataka High Court in the case of Commissioner Vs. Turbotech Precision Engineering - 2008 (10) STR 545 (Kar.). 3. The appellants submission is that they were in fact paying service tax even prior to 1.6.2007 when the new entry was brought into force. Their only content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regards applicability of composition scheme, the material fact would be whether such a contract satisfies rule 3(3) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007. This provision casts an obligation for exercising an option to choose the scheme prior to payment of service tax in respect of a particular works contract. Once such an option is made, it is applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to switch over to a new scheme is a debatable issue. It would appear that Rule 3(3) of the said Rules prohibits switching from works contract scheme to the other applicable entries during the currency of the contract. Further, there is also the decision of the Tribunal in the case of ABB Ltd. (supra) to the effect that prior to 1.6.2007 no service tax was payable on such contracts. Keeping the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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