TIOL-DDT 1575 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1575</font><br>
24.03.2011<br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Legal Metrology Act Has Not Come Into Force!</font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> yesterday's <strong>DDT</strong>, we mentioned,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Has Legal Metrology Act come into force?</strong> In the Finance Bill, in several clauses, it had been provided that, <font color="#FF6633"><strong><em>for the words, figures and brackets “Standards of Weights and Measures Act, 1976 (60 of 1976)”, the words and figures “Legal Metrology Act, 2009” shall be and shall be deemed to have been substituted with effect from the 1st day of March, 2011</em></strong></font>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the amendment to the Finance Bill in all those clauses substitutes that <em><font color="#FF6633"><strong>"Legal Metrology Act, 2009" shall be substituted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint</strong></font></em>. What happened? Has the Act not come into force?</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department of Consumer Affairs by Notification dated 31.12.2010, had notified 01.03.2011 as the effective date for the Legal Metrology Act. The Finance Ministry went by this notification and proceeded to amend “Standards of weights and measures Act” with “Legal Metrology Act” wherever it appeared in Customs and Central Excise – and that too with effect from 01.03.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But then the Consumer Affairs Ministry casually without informing the Revenue Department rescinded the Notification dated 31.12.2010 and issued another notification making the Legal Metrology Act effective from 01.04.2011. So the position would have been that the Finance Act 2011 would have recognized the LM Act much before it became effective! Somebody woke up well in time and now the amendments to the Finance Bill include provisions to make the LM Act effective from a date to be notified. This time Revenue is not taking any risks – they will notify it after the Department of Consumer Affairs finally notifies it! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Consumer Affairs Ministry issued the notification making LM Act effective from 01.04.2011, on 31.01.2011 and the budget was presented on 28 th February – a good 28 days later. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They could have avoided the embarrassment if somebody had checked the web site of the Consumer Affairs Ministry or picked up the phone and asked the ministry officials if the LM Act is really coming into force on 1 st March, 2011. Revenue Babus usually have no respect for other Babus! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> is grateful to Bangalore based Advocate and friend B. Anil Kumar for his inputs on this issue. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/notification_31jan_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consumer Affairs Ministry Notification, Dated: January 31, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">GST - Constitution (One Hundred and Fifteenth Amendment) Bill, 2011 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Minister Pranab Mukherjee has etched a place for himself in the history of Indian Taxation by introducing the Bill to bring in GST. The Bill if passed will be known as the <strong>Constitution (One Hundred and Fifteenth Amendment) Act, 2011</strong>. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Salient Features:</font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">A New Article 246A: </font><em>Special provision with respect to goods and services tax</em></strong>. Notwithstanding anything contained in articles 246 and 254, Parliament and the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by that State respectively : </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Provided</strong> that Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation. - For the purpose of this article, “State” includes a Union territory with Legislature .” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">A New Article 279A:</font></strong> <strong><em>Goods and Services Tax Council.</em></strong> - (1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Fifteenth Amendment) Act, 2011, by order, constitute a Council to be called the Goods and Services Tax Council. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) The Goods and Services Tax Council shall consist of the following, members, namely :-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the Union Finance Minister ............... Chairperson; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) ;the Union Minister of State in-charge of Revenue ... Member; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) the Minister in-charge of Finance or Taxation or any other Minister nominated by each State Government .......Members. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) The Goods and Services Tax Council shall make recommendations to the Union and the States on-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed in the goods and services tax; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the goods and services that may be subjected to or exempted from the goods and services tax; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) the threshold limit of turnover below which goods and services tax may be exempted; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) the rates of goods and services tax; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) any other matter relating to the goods and services tax, as the Council may decide. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) One-third of the total number of members of the Goods and Services Tax Council shall constitute the quorum at its meetings. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7) The Goods and Services Tax Council shall determine the procedure in the performance of its functions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(8) Every decision of the Goods and Services Tax Council taken at a meeting shall be with the consensus of all the members present at the meeting. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(9) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) any vacancy in, or any defect in, the constitution of the Council; or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) any defect in the appointment of a person as a Member of the Council; or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) any irregularity in the procedure of the Council not affecting the merits of the case. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Explanation. -</em> For the purposes of this article, “State” includes a Union territory with Legislature. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">A New Article 279B:</font></strong> Goods and Services Tax Dispute Settlement Authority. - (1) Parliament may, by law, provide for the establishment of a Goods and Services Tax Dispute Settlement Authority to adjudicate any dispute or complaint referred to it by a State Government or the Government of India arising out of a deviation from any of the recommendations of the Goods and Services Tax Council constituted under article 279A that results in a loss of revenue to a State Government or the Government of India or affects the harmonised structure of the goods and services tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) The Goods and Services Tax Dispute Settlement Authority shall consist of a Chairperson and two other members. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) The Chairperson of the Goods and Services Tax Dispute Settlement Authority shall be a person who has been a Judge of the Supreme Court or Chief Justice of a High Court to be appointed by the President on the recommendation of the Chief Justice of India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) The two other members of the Goods and Services Tax Dispute Settlement Authority shall be persons of proven capacity and expertise in the field of law, economics or public affairs to be appointed by the President on the recommendation of the Goods and Services Tax Council. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) The Goods and Services Tax Dispute Settlement Authority shall pass suitable orders including interim orders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) A law made under clause (1) may specify the powers which may be exercised by the Goods and Services Tax Dispute Settlement Authority and provide for the procedure to be followed by it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7) Notwithstanding anything in this Constitution, Parliament may by law provide that no Court other than the Supreme Court shall exercise jurisdiction in respect of any such adjudication or dispute or complaint as is referred to in clause (1). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation. - For the purpose of this article, “State” includes a Union territory with Legislature.' </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/gst_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitution (One Hundred and Fifteenth Amendment) Bill, 2011 [BILL NO. 22 OF 2011] </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Why Bill and What it proposes to do? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Statement of Objects and Reasons attached to Bill states, <em>“The scheme of the Constitution does not provide for any concurrent taxing powers to the Union as well as the States. It is proposed to introduce the goods and services tax and for this purpose to amend the Constitution conferring simultaneous power on Parliament as well as the State Legislatures including every Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. The goods and services tax would replace a number of indirect taxes presently being levied by the Central Government and the State Governments and is intended to remove cascading of taxes and provide a common national market for goods and services. The proposed Central and State goods and services tax would be levied on all transactions involving supply of goods and services except those that are exempt or kept out of the purview of the goods and services tax.”</em> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bill provides for- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) subsuming of various Central and State indirect taxes and levies like Central Excise Duty, Additional Excise Duties, Excise Duty levied under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, Service Tax, Additional Customs Duty commonly known as Countervailing Duty (CVD), Special Additional Duty of Customs (SAD), Central Surcharges and Cesses (excluding those applicable to income-tax, customs duties and to excise duties so far as they relate to goods outside the purview of the goods and services tax); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) subsuming of State VAT/Sales Tax, entertainment tax (unless it is levied by the local bodies), Luxury Tax, Taxes on lottery, betting and gambling, tax on advertisements, State Cesses and Surcharges insofar as they relate to supply of goods and services and Entry Tax, not levied by local bodies; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) levy of Integrated GST (IGST) on inter-State transactions of goods and services; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) conferring simultaneous power upon Parliament and the State Legislatures to make laws governing goods and services tax; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) coverage of goods other than crude petroleum, diesel, petrol, aviation turbine fuel, natural gas and alcohol for human consumption under the goods and services tax for the levy of goods and services tax; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) creation of a Goods and Services Tax Council to examine issues relating to goods and services tax and make recommendations to the Union and the States on parameters like rates, exemption list and threshold limits; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) enabling the setting up of a Goods and Services Tax Dispute Settlement Authority, which may be approached by the affected Government (whether the Centre or a State) seeking redressal for any loss caused by any action due to a deviation from the recommendations made by the Goods and Services Tax Council or for adversely affecting the harmonious structure and implementation of the goods and services tax; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) empowering District Councils and Regional Councils also to levy tax on entertainment and amusement; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) enabling the levy of goods and services tax on sale or purchase of newspapers and advertisements published therein; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(j) permitting only Municipalities and Panchayats to levy and collect tax on entry of goods in a local area for consumption, use or sale therein; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(k) allowing States to levy tax on intra-State sale of goods kept outside the purview of the goods and services tax, namely, Petroleum crude, High Speed Diesel, Natural Gas, Motor Spirit (Petrol), Aviation Turbine Fuel and Alcoholic Liquor for human consumption. </font></p>
</blockquote>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<font color="#006600"><strong>Budget 2011 - Different Versions - and corrections</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIFFERENT</strong> versions of the budget were doing the rounds on 28 th February, 2011. The Notifications and amendments as given in various websites and CBEC web site and the printed books of CBEC and some private publications including us did not really match. We have been getting frantic mails about mistakes in what others had published. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A communication from the Directorate of Publicity and Public Relations, says, “ Consequent upon the printing and publishing of the Budget Bulletins, 2011 (both Customs and Central Excise & Service Tax), the Directorate of Publicity and Public Relations has subsequently been informed that the following corrections are required to be incorporated in the above said Budget Bulletins, 2011.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So they have issued an errata to their budget bulletins. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/union_budget/ub2011-12/Budget_Bulletins_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DPPR F.No. DP/TARIFF/1/10/ Dated March 10, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Monitoring of food import from Japan for radioactive contamination;– CBEC Instruction </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> continuation of the earlier Instruction dated 17th March, 2011 <strong>[<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12266" target="_blank">TIOL-DDT 1571 - 18.03.2011</a>]</strong> on the subject matter, CBEC intimates that following two laboratories have been granted accreditation by FSSAI for testing for radioactive contamination of food items imported from Japan besides BRIT, Navi Mumbai: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Shriram Institute for Industrial Research, 19, University Road, New Delhi-110007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Monarch Biotech Private Limited, 37A-SIDCO Industrial Estate, Thrumazhisai, Chennai-602107 </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/instruction11_006.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. 450 /22/2011-Cus.IV; Dated March 22, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum Export Price of Onions – DGFT Notifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINIMUM</strong> Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram onions will be USD 225 per Metric Ton F.O.B. It was USD 275 per Metric Ton as notified on 16.03.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum Export Price (MEP) of Bangalore Rose Onions and ;Krishnapuram onions will be USD 600 per Metric Ton F.O.B. It was USD 1400 per Metric Ton as notified on 18.02.2011.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No.36 (RE – 2010)/2009-2014; Dated March 23, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Extended Banking Hours on 30th and 31st March 2011 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> a view to facilitating accounting of all the Government transactions of the current financial year (2010-11) by March 31, 2011 and meeting the probable rush of tax-payers towards the end of the year, RBI has decided that all Regional Offices of Reserve Bank of India (RBI) and branches of Agency banks conducting Government business will suitably extend the banking hours to conduct Government business by keeping their counters open for the purpose on March 30 and 31, 2011 to facilitate receipt of Government revenue from members of public even at late hours. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_notification.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular DGBA.GAD.No.H.6589/42.01.029/2010-11; Dated March 23, 2011 </font></strong></a></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Friday's cases</font></strong></font></strong></font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods manufactured on job work basis for suppliers of raw materials who are not related – Revenue alleging that valuation should be by adopting the principle contained in rule 8 of Valuation Rules, 2000 and not on cost construction basis - Board Circular dated 19.02.2002 refers to rule 6 and not rule 8 - Matter remanded: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are engaged in the manufacture of excisable goods falling under Chapter No.73 and 84 of the CETA, 1985. They are also engaged in undertaking job-work of M/s.ONGC . For the job-work activity, materials were supplied by ONGC and the appellants cleared their goods so manufactured on job-work basis by paying the duty on the excisable value arrived at by taking into account the material cost + job charges + 10% notional profit on the material cost. The period involved is from 29/12/2000 to 02/05/2001. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when assessee suomoto rectifies error before indulgence of AO during reassessment proceedings, penalty is leviable - NO, says ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Tribunal is - Whether when assessee suo-moto rectifies his mistake before the indulgence of the AO during the reassessment proceedings, penalty is leviable. The Tribunal says NO. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Works Contract Service - Benefit of composition scheme not available for on-going contracts where service tax was paid under existing three heads of taxable services prior to 01.06.2007 - Benefit of abatement under Notification No. 1/2006-ST available - Pre-deposit of Rs. 2.66 crores ordered and stay granted - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRIOR</strong> to 01.06.2007, the appellant paid service tax under the head “Commercial or Industrial Construction Service” under Section 65(105) (zzq) of the Finance Act 1994. After the introduction of levy of Service Tax on “Works Contract” with effect from 01.06.2007, assessee informed the department on 18.06.2007, that they were opting for payment of service tax under works contract service under the compositions scheme. Accordingly, assessee chose to pay service tax on the taxable value of works contract at the compounded rate of 2% in terms of Rule 3 (3) of Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007. The assessee continued paying service tax at the compounded rate of 4% after April 2008. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong> </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Time. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com</strong> </a></font></p>
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