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TMI Blog2017 (12) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... ules - the appellants are entitled for Composition Scheme in the present case. With reference to correct rate of duty to be followed under the Composition scheme we note that there is no dispute that the appellants have to discharge Service Tax either at 2 per cent or at 4 per cent depending on the effective rate of duty applicable during the period of providing service. The appellant are not contesting this issue. Any short payments because of adopting lower rate are to be verified by the jurisdictional authorities for correct quantification. Appeal allowed - decided in favor of appellant. - ST/971/2011 & ST/50648/2014-[DB] - ST/A/58254-58255/2017-CU[DB] - Dated:- 1-12-2017 - Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s confirming differential Service Tax liability. Penalties were also imposed on the appellant. 2. The Ld. Counsel for the appellant submitted that the demands in the proceedings cover the period 01/07/2007 to 31/03/2011. The demand arose mainly on the ground of denial of Composition scheme for Works Contract as availed by the appellant. He submitted that the contract under which they have executed the work for BHEL is of composite nature, involving supply of goods as well as provision of service. This is an admitted fact. Such contracts are liable to Service Tax only w.e.f. 01/06/2007 in terms of the law laid down by the Hon ble Supreme Court in Larsen and Tubro Ltd. - 2015 (39) STR 913 (SC) It is further submitted that after the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or methodology has been stipulated under 2007 Rules. He relied on various decided cases in support of these above contentions. 5. The Ld. AR supported the findings of the Original Authorities. He submitted that the Composition scheme is available only in terms of 2007 Rules. It is clear that the service provider has to opt for the scheme and should follow the scheme for the whole of the contract. When the appellant have paid Service Tax for this contract on a different classification prior to 01/06/2007, they are not permitted to switch over to the Composition scheme post 01/06/2007. 6. We have heard both sides and perused the appeal records. The main point of dispute is the appellant s eligibility to tax as per the composition s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he returns filed by them is enough indication to show that they have opted for payment under Works Contract Composition Scheme. The Tribunal relied on the decision in the present appellant s own case 2012 (27) STR 406 (Tribunal). 7. Following the ratio as mentioned in the above Tribunal s decision, we find the appellants are entitled for Composition Scheme in the present case. It is also noted that the appellants have not availed any credit on inputs which will bar them from availing the said scheme. Availing credit of input services is not barred by the scheme. Accordingly, we find that the objection against the appellant availing the composition scheme is not sustainable. 8. With reference to correct rate of duty to be followed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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