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2013 (6) TMI 468 - CESTAT CHENNAIWorks contract service - supply and installation of 'Electronic Security and Safety Systems' - The department wanted to treat the entire transaction as "Works contract" and levy service tax accordingly from the appellant. - Held that:- The assessable value of the goods manufactured by the appellants, on which duty of excise was paid by them, was also included in the gross amount for the purpose of demand of service tax under 'Works Contract' service whereas Rule 2 A of the Service Tax (Determination of Value) Rules 2006 as amended provides that the value of taxable service in relation to services involved in the execution of works contract shall be determined to be the gross amount charged for the works contract less the transfer of property involved in the execution of the works contract. The department has no case that no transfer of property in goods was involved in the execution of the purchase orders. Apparently, the appellant sold both manufactured goods and bought-out goods to their customers as evidenced by the relevant invoices. If that be so, the entire value will have to be kept out of the taxable value of "Works Contract "service, in which event nothing would be left to be taxed for levy of service tax. Nevertheless, in respect of installation of the bought-out components of the systems, the appellant admittedly paid service tax under the appropriate head. The appellant has made out a good case for waiver and stay. - Stay granted.
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