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TMI Blog2013 (12) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... per : D.M. Mishra, Member (J)]. - This is an application seeking waiver of pre-deposit of Service Tax of ₹ 7,45,05,771/- and equal amount of penalty imposed under Section 78 of the Finance Act, 1994. 2. At the outset, ld. counsel for the applicant submits that the applicant company is a Government of India Enterprise engaged in providing various services including the services falling u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ients. In their sales invoices in addition to the purchase price, they also charged 1% of the sale price as mark-up charges, which the Department wrongly considered as service charges for procurement of goods on behalf of the clients and accordingly, confirmed the demand. It is his submission that the goods purchased on high sea sale basis are leviable to VAT/sales tax, but exempted from payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges for procurement of goods for the clients. He also submits that in view of the aspect theory, that mark-up charges, in relation to supply of goods, could be leviable to Service Tax as well as to VAT/sales tax on the sale of the said goods. It is his submission that in computing the VAT/sales tax liability, the mark-up charges are to be includible in the total value, whereas while computin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant are engaged in the purchase of goods and re-sale of the same to the interested clients. It would be difficult, at this stage, to accept that the scope of levy of Service Tax under clause (iv) of Business Auxiliary Service, which reads as procurement of goods or services, which are inputs for the clients , would be extended to re-sale of goods. In this connection, we find that this Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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