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2024 (3) TMI 641 - CESTAT NEW DELHIShort levy of service tax - Manpower Supply Services and Works Contact Services under Reverse Charge Mechanism (RCM) in terms of proviso to Section 68(2) of the Finance Act, 1994 read with Notification No. 30/2012-ST dated 20.06.2012 - transmission or distribution of electricity by an electricity transmission or distribution utility and covered under negative list of services under clause (k) of Section 66D of the Finance Act, 1994 - HELD THAT:- Section 67(2) of the Finance Act, provides that “where the gross amount charged by the service provider, for the service provided or to be provided is inclusive of service tax payable the value of such taxable service shall be such amount as with the addition of tax payable is equal to gross amount charged.” It is therefore clear that where service tax is not separately collected by the assessee, than the price of the goods or gross amount charged for such service rendered shall be deemed to include service tax as may be applicable. It is also a settled proposition in law that no tax is leviable on state dues in the nature of tax/duty/cess etc. As no tax can be recovered on the component of labour cess discharged by the appellant, it is incumbent upon the authorities to rework the demand amount after discounting the aforesaid labour cess component from the value of taxable services as arrived at by the Revenue in the light of the aforesaid example. In view of the findings, the order of the lower authority is set aside and the matter remanded to the original authority to work out the demand amount afresh after giving due consideration from the contractual value for the labour cess amount paid for which all documentary evidence as placed on record shall be considered by the original authority. Needless to state that natural justice shall be adhered to and the appellant given reasonable opportunity to present their case. Appeal disposed off by way of remand.
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