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<h1>Service Tax Implications: Identifiable Goods Sold with Services Exempt Under Section 67; Inseparable Goods No Longer Exempt.</h1> The manual addresses the service tax implications on goods or materials sold alongside services. If the value of goods or materials is separable and identifiable under an independent contract, no service tax is levied on them. Section 67 of the Act states that only the value of the service itself is taxable. Conversely, if the goods or materials are inseparable from the service, earlier exemptions like notification 12/2003-ST have been withdrawn. Current provisions allow for deductions of the value of goods from the gross value for activities not subject to service tax.