2016 (10) TMI 1199 - AT - Service Tax

Levy of Service Tax on goods portion - Composite Contract - goods used in the work of installation suffered Excise Duty - Held that - Finance Act 1944 not being a commodity taxation law the levy under the Finance Act 1944 is only confined to provision of taxable service. Accordingly the goods used in the execution of supplying and installation of fire safety systems intended to be taxed by adjudication order is void - the adjudication attempting to tax the goods under Finance Act 1944 not permissible - appeal allowed - decided in favor of appellant.

Summary

The judgment by Appellate Tribunal CESTAT CHENNAI states that goods involved in works contract are not subject to service tax, only the taxable service provided is liable. Goods used in installation, having paid excise duty, cannot be taxed under Finance Act, 1944. Adjudication order attempting to tax goods is void, and the appeal is allowed.