https://www.taxtmi.com/caselaws?id=764250 The CESTAT held that service tax cannot be levied on the value of goods sold during execution of works contracts, as only the value of services is taxable under Section 67 of the Finance Act, 1994 and Rule 2A of the Service Tax (Determination of Value) Rules, 2006. The Department failed to identify the nature of services before confirming the demand, rendering the demand unsustainable. The appellant had already discharged the correct service tax liability on the value of services. Consequently, no penalty under Sections 77(2) and 78 of the Finance Act was imposable due to the absence of any short payment. Additionally, no late fee was payable for filing nil returns. The appeal was allowed, quashing the demand and penalties. en-us Mon, 06 Jan 2025 00:00:00 +0530 Tue, 12 Aug 2025 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764250 The CESTAT held that service tax cannot be levied on the value of goods sold during execution of works contracts, as only the value of services is taxable under Section 67 of the Finance Act, 1994 and Rule 2A of the Service Tax (Determination of Value) Rules, 2006. The Department failed to identify the nature of services before confirming the demand, rendering the demand unsustainable. The appellant had already discharged the correct service tax liability on the value of services. Consequently, no penalty under Sections 77(2) and 78 of the Finance Act was imposable due to the absence of any short payment. Additionally, no late fee was payable for filing nil returns. The appeal was allowed, quashing the demand and penalties. Case-Laws Service Tax Mon, 06 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764250