2014 (6) TMI 796

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....order dated 27/01/2012 passed by the learned Commissioner of Central Excise and Customs, Visakhapatnam  II Commissionerate, having regard to the short compass of the substantive issue involved and with the consent of respective parties, we dispose of the appeal itself. We do so after waiving the pre-deposit requirement. 2. Pursuant to the show cause notice dated 19/10/2010 and after due process, of consideration of the response to the show cause notice and the submissions made at the personal hearing, the impugned adjudication order ensued. For the covered period of April 2005 to March 2010, the impugned order confirms service tax of Rs. 1,87,84,898/- besides interest and penalties stipulated therein, for the appellant having provid....

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....nsideration received, assuming that 70% of the consideration received (asserted by the appellant to be on the basis of an industry norm) to represent the value of goods and raw materials deemed to have been sold to the recipient of the service. 5. The appellant's claim for the benefits of Notification No. 12/2003-ST dated 20/06/2003 were negated by the adjudicating authority on the ground that neither this Notification nor provisions of Section 67 of the Act (on a true and fair construction of this Notification) accommodate exclusion of the value of goods deemed to have been sold from the scope of the taxable value to be arrived at on the basis of provisions of Section 67 of the Act. In paragraph 6(b) of the adjudication order the adju....

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....ate the inherent intent of Section 67 of the Act. 7. As a consequence of the preceding analysis, the appellant is entitled to claim exclusion of the value of the goods and raw materials claimed to have been sold to the recipient of the service as part of the management, maintenance or repair agreements and works executed in pursuance thereof. The appellant is entitled to such exclusion on producing proof of the value of the goods and materials deemed to have been sold to the service recipient. 8. Since the adjudication order proceeds on the flawed premise and presumes that the value of goods and material deemed to have been sold is not liable to exclusion either under the provisions of Section 67 or qua Notification No. 12/2003, the o....