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TMI Blog2017 (10) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... authority to pass a reasoned order, after hearing the Appellant - appeal allowed by way of remand. - ST/51663/2014-CU(DB) - ST/A/70854/2017-CU[DB] - Dated:- 12-4-2017 - Shri Anil Choudhary, Judicial Member And Shri Anil G. Shakkarwar, Member (Technical) Present for the Appellant: Shri B.K. Singh (Advocate) Present for the Respondent: Shri Rajeev Ranjan (Joint Commissioner) A.R. ORDER Per: Anil Choudhary The Appellant are a partnership firm registered with the department bearing PAN based registration No.AAXFS7656PST001 with effect from 20/4/2005 for the taxable service falling under the category of Construction of Industrial Commercial Building and Civil Structures . During the course of audit of accounts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant that they were also providing non-taxable service i.e. supply of materials etc., hence service tax was not paid on such amount. The department was of the view that the Appellant had neither disclosed these amounts in their ST-3 returns submitted to the department nor paid Service Tax on value of such materials claimed to have been supplied to their clients (i.e. service receivers). 3. The Appellant had got them registered as service tax assessee on 20/4/2005 but started paying service tax from July 07 onwards. Further, while they failed to produce acknowledgement of having filed returns to the jurisdictional Superintendent of Central Excise Service tax, they produced postal/courier receipts dated 23.4.2010, 25.4.2011 and 25.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that the Appellant had provided services to their clients/customers in respect of execution of a particular work under work contract . After referring to the Terms of contract and also considering the Rule 3(1) of the Works Contract (composition scheme for payment of service tax) rules 2007, the department was of the view that whosoever is liable to pay service tax in relation to work contract service, shall have the option to discharge service tax liability on the work contract services provided or to be provided, instead of paying service tax at the rate specified in section 66 of the Act by paying an amount equivalent to four percent of the gross amount charged for the works contract. 6. The department alleged that the Appellant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Composition Scheme for payment of Service Tax Rules, 2007, but several occasions, service tax was paid @ 10.30% and 12.36% of the calculated value. It was further alleged that the Appellant had not produced any records to show that they had exercised any option as required under Notification No. 32/2007-ST dated 22/5/2007 and therefore, they were not entitled for any relaxation in service tax rates and were required to pay service tax on gross amount received by them at full rate of service tax. As per service tax law, service tax was required to be paid on the gross amount irrespective of the fact whether the material was supplied by the service recipient or the service provider. The department negated the contention of the appellant that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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