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2017 (1) TMI 163 - AT - Service TaxValuation - works contract - payment of service tax on 20% of the value - Electrical wiring, fittings and related services - demand - on 80% of the consideration received the appellant failed to discharge service tax under the category of management, maintenance and repair services. It was held that the appellants artificially spilt-up the consideration received in two components:- 80% towards supply of materials and 20% towards rendering of services. Held that: - revenue is not correct to say that the whole work order has been considered as service contract only and subjected to levy to the full. We find such assertion is factually untenable. No examination of quantum of materials supplied has been made. The appellant's claim based on the written contract, as agreed upon by the recipient of services, has been rejected without valid grounds. We further find that the appellants submitted that the supply of materials in terms of the work order always exceeds 80% to the total value. It was further asserted that this can be established from their accounts and the bills raised to the recipient of service. Demand set aside - appeal allowed - decided in favor of appellant.
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