Exemption under Notification No. 1/2006-ST failed where material value was excluded from erection and installation billing.

Exemption under Notification No. 1/2006-ST was unavailable where the value of material used in erection, commissioning and installation services was excluded from the billed amount. The bill showed only installation charges, while the purchase order indicated supply of roofing sheets and other material; this mismatch was treated as non-compliance with the notification conditions. Once that breach was established, the Tribunal found it unnecessary to examine the separate CENVAT credit objection. The exemption claim therefore failed.

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Issues: Whether the appellant was entitled to exemption under Notification No. 1/2006-ST despite exclusion of the value of material used in providing erection, commissioning and installation services.

Analysis: The exemption was denied on the ground that the appellant had not satisfied the notification conditions. On the records, the bill raised by the appellant showed installation charges only, while the purchase order reflected supply of roofing sheets and other material without inclusion of their value in the billed amount. The omission of material value amounted to breach of the exemption condition, and the Tribunal found it unnecessary to examine the CENVAT credit objection once this violation was established.

Conclusion: The appellant was not entitled to the benefit of Notification No. 1/2006-ST and the exemption claim failed.

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