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2021 (11) TMI 659 - AT - Service TaxWorks Contract Composition scheme - demand of differential Service Tax - suppression of value of services, by not including value of Transformers and other equipment - price variation clause - extended period of limitation - HELD THAT:- The impugned order is erroneous and mis-conceived as service tax has been demanded on the apparent gross value, as per contract/ agreement, of ₹ 25,71,96,000/-. The same is also in contrast to the findings of the ld. Commissioner. All the three contracts are independent contracts , there being no artificial bifurcation and supply of goods and supply of services. Ld. Commissioner has also observed in the impugned order that in relation to the works contract service, the value of transformers cannot be included. The appellant is not liable to pay service tax on the transportation charges paid by them, as they are neither a GTA and have admittedly arranged transportation for the service receiver viz. PGCIL, as a pure agent. No service tax is payable towards projected training as per contract, as admittedly the appellant has not provided any training nor they have raised any invoice towards the training charges. So far the service tax on installation/erection charges( including civil work) is concerned, it is held that the turnover of ₹ 15,79,05,395/- has to be adjusted for the amount of VAT and service tax included in the gross value, and after deduction of these, the appellant shall be further entitled to deduction for the material component as per Service Tax (Determination of Value) Rules 2006. The impugned order is set aside and matter remanded for the limited purpose of calculation of service tax payable on the gross value towards erection/installation charges of ₹ 15,25,05,395/-. The appellant is directed to prepare the calculation of admitted tax and appear before the Original Adjudicating Authority for verification and/or adjustment, if any. This appeal is allowed in part and part by way of remand.
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