2014 (2) TMI 1137 - AT - Service Tax

Valuation of goods - Goods sold in the execution of works contract of repair and maintenance - Held that - Finance Act, 1994 is not a Commodity Taxation Law. As a result of which the goods which were deemed to be sold in the execution of works contract that shall not enter into the purview of the levy of the service tax. What that is intended by Finance Act, 1994 is levy of service tax on the taxable service provided - Following decision of CCE Vs. M/s Kailash Transformers 2014 (2) TMI 1136 - CESTAT NEW DELHI - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled that service tax cannot be levied on goods deemed to be sold in a works contract. The judgement was based on a previous case involving a similar issue, where the understanding of sale of goods and services in the contract was crucial. The appeal was allowed.