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TMI Blog2018 (2) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... ular returns indicating the availment of such scheme by them - there is no tax liability on such work contract prior to 1.6.2007 - the tax liability fixed on an ongoing contract can arise only w.e.f. 1.6.2007 and the appellant can avail the composition scheme when such tax liability arises. Penalties imposed on the demands raised for the period 1.10.2009 to 30.09.2010 - interest - Held that: - Considering the question of interpretation and judicial pronouncements, which came much after the impugned order, we are inclined to set aside the penalties imposed on the appellant - Interest wherever applicable on delayed payment of service tax is statutorily requirement and has to be complied by the appellant. Appeal allowed in part. - Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the materials transferred during the execution of works contract. 2. Ld. Consultant appearing for the appellant submitted that the appellants have entered into a construction contract with M/s.Swami Build Tech. Pvt. Ltd. for construction of TDI Mall at Agra. The said contract is composite in nature involving supply of goods as well as provisions of service. Such contract can be levied to service tax only on the category of works contract service introduced we.f. 1.6.2007. Relying on the decision of the Hon ble Supreme Court in the case of Larsen Toubron Ltd. 2015 (39) STR 913 (SC), ld. Consultant submitted that there can be no tax liability for this contract prior to 1.6.2007. On the issue regarding correct payment of service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttracted in the present case. 5. Ld. Consultant submitted that the appellants have paid ₹ 97,71,964/- under Works Contract Composition Scheme during the period 1.6.2007 to 30.09.2009. This amount has not been considered while deciding the dispute by the Original Authority. Evidence of challans in such payments were also submitted. 6. Ld.AR submitted that the contract under consideration is a ongoing contract and the appellant was subjected to service tax levy by the Original Authority. The claim of the appellant for discharging duty under Composite Scheme of 2007 cannot be accepted as this is a continuing contract executed prior to 1.6.2007 and the appellant did not opt for the scheme as per the requirement. Further, while arriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery provision to collect tax on such composite services prior to 1.6.2007. Accordingly, it was held that the works contract service shall be liable to tax only w.e.f. 1.6.2007. Applying the said ratio, the appellant is liable to service tax only w.e.f. 1.6.2007. 10. The next issue for consideration is whether or not the appellant discharged service tax correctly by availing the composition scheme as per 2007 Rules. We note that the appellants discharged service tax at the composition rates w.e.f. 1.6.2007 and claimed to have filed regular returns indicating the availment of such scheme by them. We note that the Tribunal in ABL Infrastructure Pvt. Ltd. - 2015 (38)STR 1185 (Tribunal-Mumbai) held that the fact of service tax payment as refl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside the penalties imposed on the appellant. Interest wherever applicable on delayed payment of service tax is statutorily requirement and has to be complied by the appellant. 12. We note that the impugned order had given finding on various factual conclusions based on ST-3 Returns and as claimed by the appellants. While we have decided the issue on merit as per the legal principle, it is open to the jurisdictional authorities to verify the actual payment of service tax in line with the above legal principle regarding tax liability of the appellant. The appellant shall provide all the required documents, for this verification that may be done by the jurisdictional authorities. The appeals filed by the appellant are disposed of in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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