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2019 (1) TMI 380 - CESTAT HYDERABADValuation - Maintenance and Repair Services - Composite works contract - wrong availment of N/N. 12/203-ST - allowance of notional abatement of 60%/70% under N/N. 12/2003-ST - demand of service tax on GTA Services - applicability of the judgment of the Hon’ble Supreme Court in the case of Larsen & Toubro Ltd [2015 (8) TMI 749 - SUPREME COURT] before 01.06.2007 - Held that:- The contracts were indivisible works contracts involving both transfer of materials and rendition of services. The materials which they have used in this factual matrix are certainly not merely consumables such as gas, welding electrodes etc., but materials which have gone into the execution of the contracts. They have been asked to remove old steel sheets and replace them with new ones. Under such circumstances, the new steel sheets which they have installed can be deemed to have been sold to the service recipient as a part of the indivisible contracts - The exigibility of Service Tax was not argued before the adjudicating authority nor was considered by him in the impugned orders. Related to this question, exigibility of the services rendered by the appellant post 01.06.2007 in terms of Sec.65(105)(zzzza) of the Finance Act, 1994 this is also an issue which was not examined by the adjudicating authority while passing the impugned orders. Hence, this needs to be examined before the appeal can be considered by this Bench. Whether the appellant would be eligible for exemption N/N. 12/2003- ST? - Held that:- We agree with the learned department representative that any exemption notification should be strictly construed. The appellant had produced only documents to show that they have purchased materials but nothing to show that they have used the same in execution of the contracts and it is for this reason the adjudicating authority did not allow the abatement under this notification - Nevertheless when a demand of duty is being made in the show cause notice which cannot sustain if the services are not exigible to Service Tax at all and this issue needs to be examined. This is a fit case to be remanded back to the original authority to enable them to examine the matters and pass a reasoned order, after following principles of natural justice - appeal allowed by way of remand.
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