9911796707
TMI Blog2017 (9) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... alue attributable to goods, the balance is to be determined as value of service. In cases where VAT has been paid on the full value of the contract, there is no value attributable to service and consequentially no service tax is payable. Management, maintenance or repair service - Held that: - The adjudicating authority has reduced such demand after considering the reconciliation statement of the department itself. He has excluded the value of goods in the contracts in which VAT or WCS tax as applicable was paid by the applicant - Since the finding of the adjudicating authority is based on scrutiny of all the contracts and reconciliation statement of the department, we find no reason to interfere with such finding. Appeal dismissed - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, commissioning or installation services and ₹ 6,68,521/- under management, maintenance or repair services. Penalties as well as interest was also asked to be paid. Aggrieved by the impugned order, Revenue has filed the present appeal. 2. With this background, we heard Shri Amresh Jain, learned DR as well as Shri Monish Panda and Shri Mrinal Bharat Ram, learned advocates. Subsequent to hearing, learned DR also filed written submissions dated 2.6.2017 and the learned counsel for respondents filed written brief dated 9.6.2017 which also have been considered. 3. Revenue has agitated the following important grounds in the present appeal. (i) The adjudicating authority has dropped the demand of service tax amount of about & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that such reduction has been ordered by the adjudicating authority without any calculation or supporting evidence. 4. In the written submission on behalf of the respondents, detailed justifications were made supporting the impugned order. 5. Heard both the sides and perused the records including the written submissions by the learned DR. the Adjudicating authority has recorded that the respondent has entered into two types of contracts (i) purely sales contract where no element of service was involved; and (ii) contracts which are composite which involve transfer of property in goods as well as an element of service. In respect of the first type of contract, he has held that since VAT / sales tax stand paid on the entire value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to VAT return filed by the respondent in which the full contract value has been declared for payment of VAT. 7. Now we turn to the demand of Service tax in the category of management, maintenance or repair service. The demand of service tax raised in the show cause notice is for the amount of ₹ 8,93,292/- which has been reduced to ₹ 6,68,521/-. The adjudicating authority has reduced such demand after considering the reconciliation statement of the department itself. He has excluded the value of goods in the contracts in which VAT or WCS tax as applicable was paid by the applicant. Further, he has also taken into account the service tax already paid under different category of Business Auxiliary service and arrived at the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
