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2022 (11) TMI 1005 - AT - Service TaxValuation - Classification of Works Contract service received by the appellant - whether the service pertains to original work in terms of Rule 2A(ii)(A) of Service Tax (Determination of Value) Rules, 2006 or is it classifiable under clause B(ii) of Rule 2A ibid as claimed by Revenue? - HELD THAT:- Both the authorities below were required to separate the grain from the chaff in the instant case. Except for extracting the table of the ‘Works in issue’ and thereafter denying it by not treating it to be original work the authorities below have not discussed it anywhere. Although it was the specific case of the appellant before the learned Commissioner that the Adjudicating Authority has not discussed in detail as to how these works contracts are not covered under the definition of original work and by merely reproducing the bill number and name of service provider it has been held by the said authority that the demand raised is correct but the learned commissioner without going into the details and without addressing that argument merely endorses the view of the adjudicating authority. Justice should not only be done but seen to have been done. It is nowhere discussed in detail as to how each work can be said to be or not to be falling under Rule 2A(ii) ibid. None of the authorities below have thrown light on it. Although a bare reading of the work order and scope of work annexed with the work order made it clear that it is nothing but new construction but despite that it has been denied by terming it as misc. work or otherwise - Had the authorities below gone through each and every work order and the annexure mentioning the scope of work of that work order then perhaps they might have also come to the same conclusion that more or less the entire works in issue falls under Rule 2A(ii)A ibid which require service tax @ 40%. For the sake of arguments if majority of the work falls under Rule 2A(ii)A and a fraction of it falls otherwise then better classification of the work would be under Rule 2A(ii)A ibid. The appellants have rightly placed the work contract services under Rule 2A (ii)A - Appeal allowed.
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