2014 (8) TMI 414

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.... Appellant. Shri R.K. Mathur, DR, for the Respondent. ORDER The appellant imported textile machinery from Japan, Italy etc. under the cover of contract with foreign exporter and cleared the same on payment of duty on the entire value agreed upon between the seller and buyer. In terms of said agreement, installation and erection was to be done by the foreign supplier, who sent his technica....

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.... to be taken for quantifying the value of the taxable service. He accordingly confirmed the demand of Service Tax of Rs. 37,35,730/- along with imposition of penalty of identical amount under Section 78 of the Finance Act, 1994. In addition, penalties also stand imposed under Section 76 of the Finance Act. 3. Arguing on the stay petition, Shri K.K. Anand, learned advocate submits that apar....

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....d DR submits that payment of Customs duty on the entire value of the goods has got nothing to do with the payment of Service Tax under the category of installation, erection and commissioning. Two duties are separate duties and the appellant is liable to pay Service Tax on that part of value of contract which relates to the services provided by the foreign persons. He further submits that adjudica....

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....s duty on the entire value, which according to the Revenue includes the value of erection, commissioning, it is not proper to artificially segregate the said value into two parts i.e. value of the machinery and value of services. Further the adoption of the notf. in question for arriving at the artificial deemed value of the services is also not proper inasmuch as the said notification provided op....