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TMI Blog2020 (7) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is a composite service involving supply of goods and not construction service simpliciter and hence, the same is legally classifiable under the category of Works Contact Service . Therefore, the assessee has rightly paid service tax under the said category effective from June 2007 which has also been appropriated in the impugned order and thus, the contention of the Revenue that tax on existing contracts prior to June 2007 could not be paid under Works Contact is not tenable. The demand raised in the impugned order under the category of Commercial Construction or Industrial Service cannot be sustained and hence, set aside - Interest and penalties are also set aside - appeal allowed - decided in favor of appellant. - Service Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e concessional rate of 2% which has also been disputed by the Department on the ground that classification could not be changed from Commercial Construction or Industrial Service to Works Contract Services in respect of the existing contracts for availing the facility to pay tax at concessional rate. Demand was confirmed as proposed in the SCN along with interest and penalty vide the Order-in-Original dated 16.10.2009 which is under challenge in this appeal. 3. Shri Sam Derrick, Advocate appeared for the appellant and Shri K. B. Nanaiah, Asst. Commissioner (AR) appeared for the Revenue. 4. The Ld Advocate submitted that the demand is not sustainable prior to June 2007 under the category of Commercial Construction or Industrial Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struction or Industrial Service . We are therefore satisfied that the services provided by the appellant is a composite service involving supply of goods and not construction service simpliciter and hence, the same is legally classifiable under the category of Works Contact Service . Therefore, we are of the view that the assessee has rightly paid service tax under the said category effective from June 2007 which has also been appropriated in the impugned order and thus, the contention of the Revenue that tax on existing contracts prior to June 2007 could not be paid under Works Contact is not tenable. 8. In view of the above findings, the demand raised in the impugned order under the category of Commercial Construction or Industrial S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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