TMI Blog2024 (3) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... T:- Section 67(2) of the Finance Act, provides that where the gross amount charged by the service provider, for the service provided or to be provided is inclusive of service tax payable the value of such taxable service shall be such amount as with the addition of tax payable is equal to gross amount charged. It is therefore clear that where service tax is not separately collected by the assessee, than the price of the goods or gross amount charged for such service rendered shall be deemed to include service tax as may be applicable. It is also a settled proposition in law that no tax is leviable on state dues in the nature of tax/duty/cess etc. As no tax can be recovered on the component of labour cess discharged by the appellant, it is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and Works Contact Services under Reverse Charge Mechanism (RCM) in terms of proviso to Section 68(2) of the Finance Act, 1994 read with Notification No. 30/2012-ST dated 20.06.2012. The show cause notice alleges short levy of service tax of Rs.20,57,076/- as observed during scrutiny of the appellant s record for the period 2013-14 to June 2017. 3. The appellant has during the course of arguments pointed out that the demand for the aforesaid period has not been properly worked out by the department as they have calculated tax on the labour cess component included in the value of the taxable service as per the contract actual agreement entered into by the company. Thus, in short their only plea is that the assessing officer/adjudicating au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002 (141) ELT 3 (SC) National Refrigeration Air Vs. CCE, Ludhiana reported as 2011-TMI-207382-CESTAT New Delhi Raj Catering Services Vs. Commissioner of Central Excise, Pune reported as 2017 (561) STR 426 (Tri.-Mumbai) Jay Security Services Vs. C.S.T. Service Tax-Ahmedabad on 4 April, 2018 6. While it is observed from the case records that the appellant have been allowed abatement of statutory dues like service tax and or TDS, it is apparent from the submissions made by the learned Representative for the appellant that the labour cess paid by them at the rate of 1% of contractual obligation has however not been abated while working out the demand due. It is also the submission of the appellants that they have the required documentary eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5x=100 x=100/1.15 or 86.96 Gross Value shall be 86.96 corresponding Service Tax portion shall be 86.96*40/100*15/100=5.22 50% of Service Tax paid by the Service Recipient shall be 2.61. 8. I find merit in the aforesaid submissions of the appellant and as no tax can be recovered on the component of labour cess discharged by the appellant, it is incumbent upon the authorities to rework the demand amount after discounting the aforesaid labour cess component from the value of taxable services as arrived at by the Revenue in the light of the aforesaid example. In view of the findings, the order of the lower authority is set aside and the matter remanded to the original authority to work out the demand amount afresh after giving due consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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