Service tax valuation and exemption claims require fresh verification where invoices and supporting records were not properly examined.

Service tax valuation required fresh examination where installation and commissioning charges, exclusion of the value of goods sold, and the applicability of Notification No. 12/2003-S.T. had not been properly verified from the invoices and supporting records. The assessee's claim that the transaction was partly a sale and partly a service, together with its plea for SSI exemption, also remained inadequately examined. The matter therefore called for reconsideration on proper verification of the documentary evidence and computation of liability, with the dispute restored to the original adjudicating authority for a fresh decision on merits after hearing both sides.

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Issues: Whether the demand of service tax required fresh adjudication on the questions of valuation of installation and commissioning charges, applicability of Notification No. 12/2003-S.T., and eligibility to SSI exemption.

Analysis: The matter turned on whether the transactions were to be treated wholly as sale, or as a composite transaction in which the service portion had to be separately identified. The record indicated that the invoices and cost particulars had not been properly verified, and the computation of tax liability for the relevant period also required reconsideration. The assessee's claim regarding exclusion of the value of goods sold, the treatment of the service element, and the plea of SSI exemption had not been examined in full by the lower authority.

Conclusion: The impugned order could not be sustained and the matter was required to be sent back for fresh decision after proper verification of invoices and reconsideration of the assessee's claims.

Final Conclusion: The dispute was restored to the original adjudicating authority for a fresh determination on merits after affording a reasonable opportunity of hearing.

Ratio Decidendi: Where valuation, exemption, and eligibility claims have not been properly examined on the basis of the invoices and supporting material, the matter warrants remand for fresh adjudication.

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