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2022 (12) TMI 1142 - AT - Service TaxWork contract services - Determination of Value - Consideration - taxability of amount received on accrual basis - Commercial or Industrial Construction services/ Erection, Commissioning or Installation service - Works Contract service - Renting of Immovable Property service - Business Support services - demand of service tax alongwith interest and penalty - HELD THAT:- From the impugned order, para 13.4, it is evident that Commissioner has concluded that the amount of Rs 60,00,000/- forfeited by the Appellant, is a consideration on the basis of the definition of term “consideration” as per Section 2 (d) of the Contract Act, 1962. However in the Finance Act, 1994, explanation to section 67, defines the term “consideration”. In our view the manner in which the term consideration has been defined by the Finance Act, 1994 is not in pari materia with the definition as contained in Contract Act. The impugned order which relies solely on the definition as contained in the Contract Act, for holding that this amount is “consideration”, for the services provided or to be provided cannot be upheld in view of the specific definition contained in Finance act, 1994. Commissioner needs to record a finding to the effect that this amount is an consideration as per the Finance Act, 1994 by referring to definition contained in therein. Appeal is partly allowed and the matter is remanded back to the original authority.
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