TMI Blog2015 (9) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... ischarged service tax liability on notional value of 20% - Held that:- The order for classifying the activity under works contract and then imposing composition scheme is not justifiable. Service tax cannot be demanded on the portion of value which is the value of goods involved in the execution of the contract. Evidence has been presented by the appellants evidencing that VAT has been paid on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in supply, erection, commissioning and installation of lifts and elevators. A demand of ₹ 1,22,59,41,753/- has been confirmed and equivalent penalty under Section 78 of the Finance Act, 1994 has been imposed against them for the period 1.6.2007 to 31.3.2012. Although the appellants state that they have paid ₹ 63,25,77,235/- (cash) and ₹ 12,26,41,147/- (through cenvat), admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants exemption from service tax equal to the tax leviable on the goods sold by the service provider. The case is that the appellants have not discharged VAT liability on actual value of the goods and also discharged service tax liability on notional value of 20%. It was proposed to deny the benefit of works contract composition scheme on the ground that the contract is indivisible. 4. Heard bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2A of the Service Tax (Determination of Value) Rules, 2006, which provides that value of works contract service determined shall be equivalent to the gross amount charged for the works contract less the value of transfer of property in goods involved in the execution of the works contract. The appellants showed additional documents filed vide their letter dated 26.5.2014 to AR, Mumbai Bench ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contract. Evidence has been presented by the appellants evidencing that VAT has been paid on the material component. Certified documents show that the material component has suffered VAT. In view of this, the matter needs re-verification by the adjudicating authority. Accordingly, the matter is remanded to the Commissioner to decide the case afresh considering the evidence presented by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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