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2014 (8) TMI 414 - AT - Service TaxErection, commissioning and installation service - Service done by the foreign persons who did not have office in India - Notification No. 19/2003-S.T., dated 21-8-2003 and Notification No. 1/2006-S.T., dated 1-3-2006 - Held that:- There is only one contract between the appellant and the foreign supplier, which relates to the value of textile machinery supplied by him. Such supply of textile machinery includes the work of installation, erection and commissioning. There is no separate payment for the said job, reflected in the contract. The appellants have paid the customs duty by treating the entire value as the value of textile machinery. Once the appellant has paid Customs duty on the entire value, which according to the Revenue includes the value of erection, commissioning, it is not proper to artificially segregate the said value into two parts i.e. value of the machinery and value of services. Further the adoption of the notf. in question for arriving at the artificial deemed value of the services is also not proper inasmuch as the said notification provided option to assessee to seek abatement of 67% in the value of services for payment of Service Tax. These notifications are applicable to the accepted and admitted service providers and grants option to them. The same have no applicability to the facts of the present case. - Prima facie case in favour of assessee - Stay granted.
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