9911796707
TMI Blog2025 (1) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice, self-assessed its liability by claiming the benefit of Notification No. 1/2006-ST dated 01.03.2006 and paid the tax accordingly. 4. During audit of accounts by the Service Tax Department, it was found that the service provider was registered with the Commercial Tax Department as a dealer of goods for the purpose of payment of VAT/sales tax. It was further noticed by the audit team that the service provider was also paying VAT on the transfer of goods involved in execution of the two projects in question and had filed returns to the Commercial Tax Department; the goods on which such VAT/Sales Tax whichever applicable included cement, steel etc. used in the construction of the projects, since the same was deemed as a sale under the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed. Aggrieved by the said demands, the present appeal has been filed before us. 6. Heard Shri M. Saravanan, Ld. Chartered Accountant for the Appellant and Smt. O.M. Reena, Ld. Addl. Commissioner, for the Revenue. We have carefully considered rival contentions and we have also perused the documents placed on record, including various judicial pronouncements relied upon during the course of arguments before us. The only issue that arises for our consideration is, "whether the demand of Service Tax on the Appellant under WCS is in order"? 7. It is the case of the service provider that the various circulars issued by the Board are clear inasmuch as, there was no 'service' when construction activity was carried out by builder/pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has clearly held that composite contracts where transfer of property in goods is involved shall be classifiable only under Works Contract Service and not under CCS/CICS. 11. From the pleadings of the Appellant, we find that it was discharging Service Tax on 33% of the gross amount charged till June, 2010 and on the 25% value from 01.07.2010 onwards. Further, Section 129 of the Financial Act, 2017 introduced Rule 2A of Service Tax [determination of Value] Rules, 2006 effective retrospectively from 01.07.2010 as per which, when the gross amount charged included the value of goods as well as land, then the Service Tax would be payable on 25% of the gross amount charged for the works contract. This fact was in fact admitted in the SCN also and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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