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2014 (11) TMI 580 - AT - Service TaxValuation - Erection, commissioning and installation service - Imposition of interest and penalty - Held that:- Service tax levy is confined to supply/rendering/provision of service. It does not extend to supply of goods, if the same is involved in a composite contract involving supply of service. Therefore, in a contract which involves both supply of goods as well as supply of services, service tax liability can be fastened only on the value of the service rendered. This is the position in law as explained by the hon'ble Delhi High Court in the case of G.D. Builders vs. Union of India - [2013 (11) TMI 1004 - DELHI HIGH COURT]. Therefore, the question of inclusion of value of goods supplied in a composite contract for the purpose of levy of service tax is clearly unsustainable. Therefore, the matter has to go back to the adjudicating authority to determine and exclude the value of the goods supplied in the contract undertaken by the appellant and thereafter, re-determine the service tax liability of the appellant - Matter remanded back - Decided in favour of assessee.
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