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2013 (5) TMI 82

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..... the balance given to the subcontractors who have actually undertaken the work - service tax demand under ‘Business Auxiliary Service’ on the 2% to 3% margin retained by the appellant - Held that:- The amount of 2% to 3% margin retained by the appellant cannot be treated as service charges received from the sub-contractors and separately taxed under ‘Business Auxiliary Service’ in the light of th .....

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..... -contractors. They have retained margins (referred to as commission ) of 2% to 3% of the amount received from the Andhra Pradesh Government and the balance was given to the subcontractors who have actually undertaken the work. 2.2 The show-cause notice was issued alleging that the amount so retained pertained to commission received from the subcontractors for execution of works on contract on .....

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..... reiterated the findings and reasoning of the Commissioner (Appeals) and sought for pre-deposit. 5. In our considered opinion, the amount of 2% to 3% margin retained by the appellant cannot be treated as service charges received from the sub-contractors and separately taxed under Business Auxiliary Service in the light of the submissions that the entire amount received from Andhra Pradesh Gover .....

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