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2019 (1) TMI 916 - HC - Service TaxValuation - activity of re-treading of motor vehicle tyres - reduction of cost of goods on which VAT has paid - Demand of service tax - penalty at the rate of 1% of the demanded service tax - management, maintenance or repair services - It is the case of the Petitioner that the Petitioner also pays the sales tax/VAT on the portion of gross receipts representing the value of goods and materials sold by way of consumption in carrying out the activity of re-treading of motor vehicle tyres in terms of Goa Value Added Tax Act - Constitutional validity - Section 35F of the Central Excise Act, 1944 - Held that:- In the present case, the Petitioner had produced documentary proof by way of Cost Accountant's Certificate, clearly indicating the details and value of the goods and materials which formed the subject matter of sale/deemed sale. Further, in this case, the Petitioner had produced on record documentary proof that sale/deemed sale component corresponding to 70% of the gross value, the Petitioner was in fact assessed to and levied sale tax/VAT to the local Sale Tax/VAT Authorities. The Petitioner also adduced documentary proof regarding payment of such local sales tax/VAT to the State Authorities. - there was absolutely no justification on the part of the Commissioner in denying the Petitioner the benefit of exemption under Notification No. 12/2003-ST. Since, we are satisfied that the impugned order dated 14 October 2016 is required to be set aside, there is no necessity of deciding on the constitutional validity of Section 35F of the said Act.
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