CESTAT, an Appellate Tribunal, addressed the valuation of ...
Appellate Tribunal rules in favor of Appellant on service valuation issue. Separate charges for installation and transport/insurance.
Case Laws Service Tax
June 22, 2024
CESTAT, an Appellate Tribunal, addressed the valuation of services in a case involving transport/insurance charges received by the Appellant for the erection and installation of transmission towers. The Tribunal held that the separate consideration for installation and transportation/insurance charges indicated distinct and independent activities under the service contract. Referring to a precedent, it emphasized that services should not be classified as a single composite service if they are distinct and independent. The Tribunal also rejected the extended period of limitation, noting that the allegation of suppression of facts was incorrect. Consequently, the demand for service tax was deemed legally unsustainable, and the impugned order was set aside, allowing the appeal.
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