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2014 (1) TMI 40 - CESTAT BANGALOREWaiver of pre-deposit - Stay of recovery - Works Contract Service - whether the activities undertaken by the appellant during the aforesaid period should be classified as ‘Erection, Commissioning and Installation Service’ under Section 65(105)(zzd) of the Finance Act, 1994 as claimed by the assessee or as ‘Works Contract Service’ under Section 65(105) (zzzza) of the Act - Held that:- appellant should not be directed to make any pre-deposit inasmuch as the substantive issue is one of valuation of the service and, if the service is supposed to be ‘works contract service’, the provisions of Rule 2A of the Service Tax (Determination of Value) Rules, 2006 cannot be overlooked. As per this rule, the value of ‘works contract service’ shall be equivalent to the gross amount charged for the works contract less the value of transfer of property in goods involved in the execution of the said works contract. As per Explanation to the rule, the gross amount charged for the works contract shall not include VAT or sales tax, as the case may be, paid, if any, on transfer of property in goods involved in the execution of the said works contract - considering the provisions of Rule 2A ibid applicable to valuation of ‘works contract service’, we are inclined to grant waiver of pre-deposit and stay of recovery inasmuch as the appellant has admittedly paid service tax on 15% of the gross value after deducting the cost of goods and materials involved in the execution of works - Stay granted.
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