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2014 (8) TMI 414

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..... the value of textile machinery. Once the appellant has paid Customs duty on the entire value, which according to the Revenue includes the value of erection, commissioning, it is not proper to artificially segregate the said value into two parts i.e. value of the machinery and value of services. Further the adoption of the notf. in question for arriving at the artificial deemed value of the services is also not proper inasmuch as the said notification provided option to assessee to seek abatement of 67% in the value of services for payment of Service Tax. These notifications are applicable to the accepted and admitted service providers and grants option to them. The same have no applicability to the facts of the present case. - Prima fac .....

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..... dingly confirmed the demand of Service Tax of ₹ 37,35,730/- along with imposition of penalty of identical amount under Section 78 of the Finance Act, 1994. In addition, penalties also stand imposed under Section 76 of the Finance Act. 3. Arguing on the stay petition, Shri K.K. Anand, learned advocate submits that apart from the fact that foreign exporters are having their office in India, in which case Service Tax liability would not fall upon the recipient of services, they have discharged the customs duty on the entire value of the textile machinery. If that be so, Commissioner was not justified in arriving at a deemed value of services included in the said contract value and to confirm Service Tax. He also submits that notificat .....

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..... are prima facie of the view that once the appellant has paid Customs duty on the entire value, which according to the Revenue includes the value of erection, commissioning, it is not proper to artificially segregate the said value into two parts i.e. value of the machinery and value of services. Further the adoption of the notf. in question for arriving at the artificial deemed value of the services is also not proper inasmuch as the said notification provided option to assessee to seek abatement of 67% in the value of services for payment of Service Tax. These notifications are applicable to the accepted and admitted service providers and grants option to them. The same have no applicability to the facts of the present case. 6. In view .....

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