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2014 (7) TMI 449 - CESTAT NEW DELHIValuation - Short payment of service tax - value of taxable services, as declared in the ST-3 Returns during each financial year was much less than the gross amount received for providing various services, as declared on the balance sheets - civil and industrial construction - w.e.f. 01.06.07 this activity was classifiable as "Works Contract Service" under section 65(105)(zzzza) - Held that:- it is seen that the service tax demand on the civil and industrial construction service has been confirmed on the gross amount charged while during the period prior to 01.06.07 the appellant were eligible for exemption under Notification No.1/2006-ST dt. 01.03.06 and accordingly were liable to pay duty on 33% of the gross amount charged if they satisfied the conditions for this notification. During period w.e.f. 01.06.07 their service is classifiable as "Works Contract Service" and in term of Rule 2A of the Service Tax Valuation Rules, the value of the goods supplied for provision of service tax on which the VAT/Sales Tax had been paid would have to be excluded, but this has not been done. Moreover, during period from 01.06.07 in respect of "Works Contract Service", the appellant would also eligible for compounded rate under Works Contract Service (Composition Scheme for Payment of Service Tax) Rules, 2007 if they satisfy the conditions prescribed in this regard but their eligibility for Compound Levy scheme has also not been considered - impugned order is not sustainable - order set aside - Matter remanded back - Decided in favour of assessee.
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