TMI Blog2014 (6) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... the component of sale of goods. Accordingly, on this interpretation of the provisions of Section 67 the value of goods sold or deemed to have been sold, requires to be excluded from the taxable value for computation of service tax liability. Consequently, provisions of Notification No. 12/2003 merely explicate the inherent intent of Section 67 of the Act - appellant is entitled to claim exclusion of the value of the goods and raw materials claimed to have been sold to the recipient of the service as part of the management, maintenance or repair agreements and works executed in pursuance thereof. Since the adjudication order proceeds on the flawed premise and presumes that the value of goods and material deemed to have been sold is not li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant having provided the taxable service of management, maintenance or repair service; and Rs. 1,05,436/- for renting of its immovable property, besides levying interest and penalties, as specified in the order. 3. From the material on record, we find no error insofar as the demand of Rs. 1,05,536/- is confirmed on renting of immovable property. The contention of the learned counsel for the appellant on this count is that, during the relevant period, there was considerable ambiguity whether renting of immovable property was a taxable service and, therefore, neither were service tax returns filed nor was the applicable service tax remitted. This contention does not commend acceptance. Legislative dynamics including the retrospective ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion order the adjudicating authority notes that the appellant failed to mention the exact quantity and details of the materials/equipment or their make used/consumed/sold in the invoices raised on the service recipient and only a lumpsum figure is reflected in the invoices towards the material and service charges on which VAT is said to have been discharged at 4% on the 70% of the invoice value and the service tax on 30% of the value of the invoice is claimed to have been remitted. In paragraph 6(c) of the order, the Authority notes that as per the details available in the balance sheet of the appellant, the cost of the material consumed during the years 2005-06 to 2009-2010 is reflected as 34% on an average for the said period, and is at v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 12/2003, the order invites invalidation and is accordingly quashed. The matter is however, remitted to the adjudicating authority for denovo disposition. The appellant is at liberty to submit proof, of the value of the goods and material deemed to have been sold while executing the repair and maintenance service, within of four weeks from the date of receipt of this order. After this period, if the appellant furnishes any material in support of its claim for exclusion of value of such goods or material, the learned Commissioner shall consider such material and pass an order of adjudication afresh. If the appellant produces no such material within the time stipulated, the Commissioner is at liberty to proceed with passing of the adjudica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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