2009 (3) TMI 195 - AT - Service Tax

The issue involved is the question of demand of the value of the materials used in providing services from the total receipt. - the appellant had already paid a sum of Rs. 2,92,65,589/- out of demand of Rs. 9,75,51,961/- - we find that this Bench in several decisions has held that the value of the materials should not be included for demand of Service Tax. Moreover, the appellants had already paid the Service Tax on the remaining portions of the receipt. Hence, we order waiver of the balance amount demanded in the impugned order.

Summary

The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant, waiving the balance amount of Service Tax demanded in the impugned order. The appellant had already paid a significant sum, and the Tribunal held that the value of materials should not be included in the Service Tax demand. The case will be listed again on 11-6-2009.