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2014 (6) TMI 796 - AT - Service TaxManagement, maintenance or repair service - Exclusion of value of material - appellant disclosed 30% of the consideration received, assuming that 70% of the consideration received (asserted by the appellant to be on the basis of an 'industry norm') to represent the value of goods and raw materials deemed to have been sold to the recipient of the service. - Held that:- wherever there are complex transactions including components of service and sale of goods (actual or deemed), the taxable value for levy of service tax would be only the component of service but excluding the component of sale of goods. Accordingly, on this interpretation of the provisions of Section 67 the value of goods sold or deemed to have been sold, requires to be excluded from the taxable value for computation of service tax liability. Consequently, provisions of Notification No. 12/2003 merely explicate the inherent intent of Section 67 of the Act - appellant is entitled to claim exclusion of the value of the goods and raw materials claimed to have been sold to the recipient of the service as part of the management, maintenance or repair agreements and works executed in pursuance thereof. Since the adjudication order proceeds on the flawed premise and presumes that the value of goods and material deemed to have been sold is not liable to exclusion either under the provisions of Section 67 or qua Notification No. 12/2003, the order invites invalidation and is accordingly quashed. The matter is however, remitted to the adjudicating authority for denovo disposition - Decided in favour of assessee.
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