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2017 (1) TMI 1132 - AT - Service TaxWorks contract - installation and commissioning charges - service charges/commission for installation was neither separately computed nor mentioned on the body of invoices, whereas they were paying service tax on certain percentage of contracted value - whether demand of tax on these charges and levy of penalty justified? - Held that: - the issue, whether works contract service, involving supply, installation and commissioning service, which is composite in nature, could be vivisected, and the service component be charged to service tax under the FA, 1994, has been finally, settled in Larsen & Toubro's case [2015 (8) TMI 749 - SUPREME COURT], where it was held that the works contract service such as the one under consideration cannot be vivisected and subjected to service tax on the service component thereof - In the present case starting from the show cause notice level, it has been alleged that even though the Respondent had rendered Works Contract service and received consolidated charges towards such supply and service, they failed to discharge the service tax on the service component of the charges by vivisecting the works contract into supply and service. Thus, the aforesaid decision is squarely applicable to the facts of the present case - demand set aside - appeal rejected - decided against Revenue.
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