TMI Blog2013 (12) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... o assess the taxable value of the services provided or in analyzing the validity of the Petitioner’s claim that only 2% of the value of the contracts was attributable to the taxable service component, appears fallacious - Stay granted. - Appeal No.S.T. 272/11 - ORDER NO.SO/71208/2013 - Dated:- 24-9-2013 - SHRI G. RAGHURAM AND DR. I.P. LAL, JJ. For the Appellant : Shri M.P. Debnath, Advocate Shri Abhisek Anand, Advocate For the Respondent: Shri S. Misra, Addl. Commr.(A.R.) ORDER Per Shri Justice G. Raghuram 1. Waiver of pre-deposit of the adjudicated liability of Rs.15,31,42,774/- besides Cesses and interest as assessed is the relief sought. 2. The Petitioner is a Computer hardware and software producer. It entered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Govt. in purported exercise of its power under Section 93 of the Act. The adjudicating authority however, rejected the assertion of the Petitioner that the service component was only to the extent of 2% of the total value of the contracts; considered the total value of all the contracts entered into by the Petitioner with several parties and the consideration received therefrom as the gross taxable value received for services provided, under Section 65(105)(39a); gratuitionsly applied the provisions of Notification No.1/2006-ST and applied the applicable rate of Service Tax on 33% of such value and determined the liability, by applying the benefits under Notification No.1/2006-ST dated 03.06.2006 corresponding to an earlier Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C) and another decision of the Apex Court in Imagic Creative Pvt. Ltd. vs. Commissioner of Commercial Taxes -2008 (9) S.T.R. 337 (SC) for the same proposition. 5. The several decisions of the Supreme Court and of this Tribunal prima facie, explicate the principle that the value of a transaction which is liable to or has been assessed to levy of sales tax must be considered outside the scope of the taxable value for the purpose of levy of Service Tax, under the Act. This is the core issue in the present Appeal also. This apart, the process followed by the adjudicating authority in suo motu applying the benefits of exemptions Notifications and failing to assess the taxable value of the services provided or in analyzing the validity of the P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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