9911796707
TMI Blog2017 (7) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... of calculating 8% - Held that: - the issue indeed involved interpretation of the valuation provision in a case where a value is towards the works contract and arrived at the value of 6(3)(b). Therefore, looking to the nature of the issue no malafide can be attributed to the appellants. Accordingly, penalty under Section 11AC is not imposable. Job-work - demand of differential amount of 8% be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also undertaking works contract of supplying and laying of pipes apart from own manufacture. They are procuring manufactured pipes from the job worker and supply the same for execution of the works contract. 2. It is the case of the department that in case of their own manufacture since the pipe is under exemption they are reversing 8% of the value which was arrived at after deducting various e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring on behalf of the appellants submits that as regards the first demand in respect of pipe manufactured by them the total value is towards the entire works contract. He submits that considering the small amount of ₹ 4985/- he is not contesting the demand but submits that the equal penalty under Section 11AC may be set aside on the ground that the issue involved of interpretation of the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the valuation provision in a case where a value is towards the works contract and arrived at the value of 6(3)(b). Therefore, looking to the nature of the issue no malafide can be attributed to the appellants. Accordingly, penalty under Section 11AC is not imposable. I therefore set aside the penalty under Section 11AC corresponding to the amount of ₹ 4985/-(as per Annexure A). As rega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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