Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1691 - AT - Service TaxReverse charge mechanism - erection, commissioning and installation service - customs duty has been discharged on the full gross value contracted and shown in the invoice during the course of import of the said machinery - demand of service tax and penalties - HELD THAT:- There is a certificate issued by the jurisdictional Superintendent of Central Excise on 07.07.2006 in connection with the appellant’s obligation under the ECCG Scheme indicating the installation of 2 of the machines prior to 18.04.2006. Similarly, there are certain indications, based on the correspondence entered into by the appellant with the supplier of machines, that the supplier appears to have had an establishment in India during the material time. Further, the contract for importation of this machinery is, admittedly, a composite one for lump-sum payment which included installation and erection of the machine at the appellant’s premises - The customs duty on the whole value is claimed to have been discharged by the appellant. In such situation we find that the question of subjecting a portion of the invoice value for service tax purpose is not sustainable. Prima-facie, the split up of value for service tax purpose, when the whole value has been subjected to customs duty towards import of goods, is not sustainable. However, the basic facts like contract and the invoices alongwith the other issues raised by the appellant is to be examined afresh by the original authority - Appeal allowed by way of remand.
|