2014 (9) TMI 216

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....aterials which were to be supplied and the service portion of the contract was specifically mentioned. Show Cause Notice issued demanding service tax on the ground that the applicants are paying VAT as well as Service Tax on notional value, therefore, the applicants are liable to discharge service tax liability on the contracts under the composite scheme. The adjudicating authority in para 82 held as under:            "82. The notice has admittedly determined the taxable value of installation, testing and commissioning services on notional/estimated basis. Declared such notional/estimated taxable value in their ST-3 returns instead of the value on the basis of gross amount received for the ....

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....n the service portion of the contract. The data produced by the applicants regarding the actual value of goods transferred under the contract is not taken into consideration while passing the impugned order. In spite of the data before the adjudicating authority, the adjudicating authority confirmed the demand on the ground that everything has been done on estimate basis. The applicants relied upon the provisions of Rule 2A of the Service Tax (Determination of Value) Rules, 2006. The contention is that as per the provisions of Rule 2A (c) of the Rules the actual value of property in the goods transferred in the execution of work contract is the value adopted for the purpose of payment of VAT the same is to be taken the value of the property....

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....s a specific mention as to the value of the goods supplied. The quantum of consideration in respect of service is also mentioned. The case of the Revenue is that the applicants are paying service tax on the estimate value mentioned in the contracts. We find that before the adjudicating authority the applicants produced the actual data regarding the value of goods transferred in execution of the contract and the VAT paid in respect of all the contracts. The copy of the same is part of the present appeal also. The data is in respect of contract details such as commencement of the contract, date of completion, value of contract, material value, VAT charged, labour value, service charged, even the number and date of invoices showing the materia....