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2017 (11) TMI 1108 - AT - Service TaxErection, commissioning and installation service - Revenue held a view that the respondent did not discharge service tax on various services rendered to their clients under the said category - Held that: - The fact that the respondent availed certain services from job workers to install and make it functional, the delivered equipment in the premises of the customers by itself will not vary the nature of contract and the fact that they have paid the sales tax on the full value - If the goods were sold and VAT is paid as per the State Govt. law for full value, no tax liability will arise under the Finance Act, 1994. The SCN proceedings against the respondent is to recover service tax under “erection, commissioning and installation service”. We note that the contracts which were proposed to be made liable for service tax are composite in nature involving supply of goods and certain element of service as claimed by the Revenue. If that be so, the tax liability of such service will arise only with effect from 1.6.2007 - On this ground also the proceedings could not have been concluded under works contract as the proposal is under entirely different service. Appeal dismissed - decided against Revenue.
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