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TMI Blog2017 (4) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 65(64) of the Finance Act, 1994. 2. The dispute in the present appeal is with reference to the value taken for discharging the service tax liability. The appellants have discharged service tax on 20% value of the contract. The contract stipulated that the value of the materials to be supplied as 80% and the service portion will be 20%. The appellants discharged VAT on supply of the goods and discharged service tax on rendering of service. The Revenue entertained a view that the valuation has been made improperly by the appellant and in terms of the notification no.12/2003-ST, they have not properly taken the actual service value to pay service tax. The proceedings initiated against the appellant, by way of issue of various show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultant. In the case of Gogia Brothers (supra), the Tribunal observed as under:- "5. The only dispute in the present appeal is relating to value adopted by the appellant for discharging service tax liability. Admittedly, the work orders mentioned the bifurcation of value for supply of materials as well as rendering of service to the proportion of 80% -20%. Admittedly further, there is supply of materials in these contracts. In such situation, without further examining the actual quantity of supply of materials, it is not correct on the part of the Original Authority to confirm the tax liability on the whole of the consideration ignoring the terms of the work order. In other words, the whole work order has been considered as service contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llegations by producing sufficient documentary evidence. We note that in the present case, on similar set of contracts, there are separate set of invoices with payment of VAT on sale of goods. As such, there is no justification for inclusion of such transaction value for levy of service tax. Accordingly, we find that the impugned order cannot be sustained." 7. We also note that the appellants pleaded that there is no monetary gain for them in artificially loading more value to materials supplied by paying VAT, as the rate of VAT is higher than the service tax, payable on the service portion. We have perused a few work orders, which clearly stipulated that 80% of the value shown to have suffered VAT with reference to supply of materials. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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