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TMI Blog2016 (10) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1994 and defined under Section 65 (25) (b) of the Act. After the introduction of the Works Contract Service (WCS) w.e.f. 01/6/07 the appellant opted to reclassify their service under WCS falling under Section 65 (105) (zzzza) and started paying duty under Composition Scheme notified by Notification No. 32/2007-ST dated 22/5/07. The Department took the view that the appellant cannot change the classification of the service rendered by them from commercial or industrial construction to works contract service w.e.f. 01/6/07 for the reason that the service tax payment had already commenced prior to 01/6/07 under CIS and the same works contracts were continued beyond that date. Further, the availment of the composition scheme was also held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. 01/6/07. They have contended that this view has been held by the Hon'ble Supreme Court in the case of CCE & CUS, Kerala vs. Larsen & Toubro Ltd. reported in 2015 (39) S.T.R. 913 (S.C.). The Apex court held that any composite contract which involves both supply of goods as well as rendering of service can only be classified under works contract scheme after its introduction from 01/6/07. The appellant has further submitted that w.e.f. 01/6/07 they will not only be entitled to the change of their classification to WCS, but will also be entitled to the benefit of Rule 2A of the Service Tax Determination of Valuation Rules, 2006. This view finds support in the decision of Tribunal in the case of Ahluwalia Contracts (I) Ltd, vs, CCE, N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Tribunal in the case of Ahluwalia Contracts (I) Ltd. vs CCE, Noida (supra). The facts of those case are identical to the present. It is useful to reproduce the finding of the Tribunal in the Ahluwalia Contracts (I) Ltd. case :- "4. It is seen that the appellants started classifying the service rendered by them under works contract service with effect from 1-6-2007 and started availing of the Composition Scheme. The adjudicating authority denied such re-classification on the ground that services under those works contracts had commenced prior to 1-6-2007 under CICS/CCS and as per Board's Circular No. 98/1/2008-S.T., dated 4-1-2008 Composition Scheme in respect of such contracts is not permissible. The issue whether for ongoing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants subject to producing the required evidence". 6. The appellant has fairly admitted that they will not be entitled to the benefit of the composition scheme w.e.f. 01/6/07. In the light of the decision of the Tribunal in the Ahluwalia Contracts (I) Ltd. case we find that the issue is no longer res-integra. They will be entitled to re-classify their services under Works Contract Scheme 01/6/07. They will also be entitled to the benefit of Rule 2A of the Service Tax Determination of Valuation Rules. However, we find that the issue needs to be remanded back to the original Adjudicating Authority for evaluating the claim of the appellant to the quantum of the benefit entitled to them under Valuation Rule 2A of the Service Tax Determina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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