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2018 (12) TMI 258 - AT - Service TaxValuation - Maintenance and repair service - repairing/reshelling the old and worn out rollers of sugar mills - whether the cost of the scrap generated during the course of repair of their customer’s, sugar rollers would form part of the service so as to discharge the service tax on the same or not? - Held that:- It is not a case where particular activity is being adjudged as a manufacturing activity or service activity, in which case the payment of Excise Duty on the scrap so arisen is the relevant consideration for holding the activity as not amounting to manufacture. In the present case the dispute relates to the value of the admitted service, which is leviable to service tax. The appellants are being paid for the said service by their service recipient, in cash as also in kind. The payment in kind is equivalent to value of the scrap which the appellant has been allowed to retain. The payment made in cash to the extent of ₹ 100/- and in kind to the extent of ₹ 50/-, being the value of scrap is required to be considered as the value of the service. The fact of clearance of said scrap on payment of duty of Excise has no relation for arriving at the value of the service - thus the value of the scrap is required to be added in the value of the services. Time Limitation - Held that:- The charge of suppression cannot be maintained, the Lower Authorities have not adverted to the said fact and as such we deem it fit to remand the matter to the Original Adjudicating Authority for deciding the issue of limitation afresh, based upon the documentary evidence on record. Appeal is rejected on merits and remanded on limitation.
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