TMI Blog2018 (12) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of the admitted service, which is leviable to service tax. The appellants are being paid for the said service by their service recipient, in cash as also in kind. The payment in kind is equivalent to value of the scrap which the appellant has been allowed to retain. The payment made in cash to the extent of ₹ 100/- and in kind to the extent of ₹ 50/-, being the value of scrap is required to be considered as the value of the service. The fact of clearance of said scrap on payment of duty of Excise has no relation for arriving at the value of the service - thus the value of the scrap is required to be added in the value of the services. Time Limitation - Held that:- The charge of suppression cannot be maintained, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t s records, officers found that they were discharging their service tax liability only on the job charges agreed with their customers. Inasmuch as the appellant was allowed to retain the scrap generated during the course of repair, the officers entertained a view that the job charges were not the sole price for such repair and maintenance service. Inasmuch as there was an understanding between the appellant and their customers that the scrap so generated will be retained by them and the cost of such scrap had been adjusted against the agreed job charges amount. 3. In view of the above proceedings were initiated against them by way of issuance of two show cause notice dated 14.10.2009 for the period from 2007-08 to February, 2009 and dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration; (b) where the value cannot be determined in accordance with clause (a), the service provider shall determine the equivalent money value of such consideration which shall, in no case be less than the cost of provision of such taxable serice . From above, the Lower Authorities have observed that the retention of scrap by the appellant amounts to reduction of job charge to the extent of value of scrap so retained inasmuch as the appellants have received the job charges in cash as also in kind. Admittedly, the job charges paid by the customers is not the sole consideration for providing the service and the value of the scrap, which in fact belongs to the customer, stands retained by the appellant. As such the same has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent of ₹ 100/- and in kind to the extent of ₹ 50/-, being the value of scrap is required to be considered as the value of the service. The fact of clearance of said scrap on payment of duty of Excise has no relation for arriving at the value of the service. As such we find no merits in the above contention of the appellant, and hold that the value of the scrap is required to be added in the value of the services. 6. However, appellants have also submitted that part of the demand is barred by limitation having been raised beyond normal issue. Learned Advocate has submitted that vide their letter dated 17.07.2007 they have informed the Assistant Commissioner and the Superintendent of their activity including the fact that they ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
