9911796707
TMI Blog2024 (6) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Scheme for Payment of Service Tax) Rules, 2007 and as per the said Rules, if an assessee opts to pay Service Tax under the Composition Scheme, then the assessee has to intimate the Department in advance for opting the same and the said option cannot be withdrawn before completion of the said works contract. The same position also applies to the Revenue. During the impugned period, unless and until the works contract is completed, the rate of tax cannot be changed, as held by the Hon ble High Court of Calcutta in the case of LARSEN TOUBRO LTD. VERSUS ASSISTANT COMMISSIONER OF SERVICE TAX ORS. [ 2016 (7) TMI 1271 - CALCUTTA HIGH COURT] wherein the Hon ble High Court observed ' This Court finds substance in the submission of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % with effect from 01.03.2008 vide Notification No. 07/2008-S.T. dated 01.03.2008. 3. On the basis of scrutiny of the S.T.-3 returns filed by the appellant for the period from October 2008 to September 2009, it was revealed that the appellant had assessed their Service Tax liability at the rate of 2% of the cost value as against 4% in view of the revised rate of duty vide Notification No. 07/2008-S.T. dated 01.03.2008. 4. Accordingly, two Show Cause Notices were issued to the appellant proposing to demand differential Service Tax from the appellant. The matter was adjudicated and the differential demand of Service Tax came to be confirmed along with interest; penalties were also imposed, under Section 76 of the Finance Act, 1994. On challen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the record. 8. We find that the appellant has opted in advance for payment of Service Tax under Rule 3 of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 and as per the said Rules, if an assessee opts to pay Service Tax under the Composition Scheme, then the assessee has to intimate the Department in advance for opting the same and the said option cannot be withdrawn before completion of the said works contract. The same position also applies to the Revenue. During the impugned period, unless and until the works contract is completed, the rate of tax cannot be changed, as held by the Hon ble High Court of Calcutta in the case of M/s. Larsen Toubro Ltd. v. Assistant Commissioner of Service Tax [2017 (7) G.S.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment would sufficiently constitute the exercise of option under composite scheme. Apart from relying upon Rules 6 and 7 of the Service Tax Rules there is no iota of piece of paper produced before this Court that an option was exercised prior to 26-3-2008 by payment of the service tax under composite scheme. The authorities have proceeded that since the option was exercised for the first time on 26-3-2008 the petitioner cannot claim that he would still be liable to pay the tax at the rate of 2% under the said composite scheme and not at the rate of 4% subsequently changed on and from 1st March, 2008. If the rate which was applicable as on the date of exercising an option such rate would continue for the entire period of the works contract. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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