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2017 (1) TMI 163 - CESTAT NEW DELHI

2017 (1) TMI 163 - CESTAT NEW DELHI - TMI - Valuation - works contract - payment of service tax on 20% of the value - Electrical wiring, fittings and related services - demand - on 80% of the consideration received the appellant failed to discharge service tax under the category of management, maintenance and repair services. It was held that the appellants artificially spilt-up the consideration received in two components:- 80% towards supply of materials and 20% towards rendering of services. .....

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order always exceeds 80% to the total value. It was further asserted that this can be established from their accounts and the bills raised to the recipient of service. - Demand set aside - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 55203/2013(DB) - 55976/2016 - Dated:- 14-12-2016 - Shri S. K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri A.K. Batra, Advocate for the appellant Ms. Neha Garg, DR for the respondent ORDER Per B. Ravich .....

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he category of management, maintenance and repair services . It was held that the appellants artificially spilt-up the consideration received in two components - 80% towards supply of materials and 20% towards rendering of services. The lower authority found such arrangements as legally not tenable and accordingly, confirmed service tax on full consideration value received by the appellant. 2. Ld. Consultant for the appellant submitted that mainly on the following grounds (a) contract with vario .....

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he retrospective amendment carried out vide Finance Act, 2012 (Section 98), which excluded non-commercial Government building from the purview of the tax liability. 3. Ld. AR contested the submissions of the appellant. She drew our attention to the contents of the work order and the findings thereafter. It is her contention that such bifurcation 80% to 20% cannot be validly accepted for charging service tax in absence of actually supply of materials. In fact the Original Authority has recorded t .....

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such situation, without further examining the actual quantity of supply of materials, it is not correct on the part of the Original Authority to confirm the tax liability on the whole of the consideration ignoring the terms of the work order. In other words, the whole work order has been considered as service contract only and subjected to levy to the full. We find such assertion is factually untenable. No examination of quantum of materials supplied has been made. The appellant s claim based o .....

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