2014 (11) TMI 582

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....nt : Mr. A.K. Nigam, AR ORDER Per: B.S.V. MURTHY; Proceedings were initiated against the appellant by issue of show-cause notice dated 21.10.2011 on the ground that appellant was liable to pay service tax of Rs. 5,50,66,277/- on the amount paid to the foreign supplier for Freeze Drying Plant under Erection, Commissioning or Installation services. Besides demanding interest, penalties also....

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....erence in the value as per the agreement (71,00,000 Euros) and the actual amount paid (75,39,550 Euros) indicates the consideration for the services.           iv. Abatement under Notification No. 1/2006 ST dated 01.03.2006 not available as being an EOU, the assessee is eligible to avail CENVAT credit on capital goods and the appellant did not produc....

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....(as per list of documents filed on 26.12.2012). c) In any case, the entire contract, including service provided, if any, would be a Works Contract, which came into levy only w.e.f. 01.06.2007. Reliance is placed on the decision of Larsen and Tubro Ltd. V. State of Karnataka, [2013-TIOL-46-SC-CT-LB] (now referred to 5 judge bench). d) No service was rendered by the Foreign Supplier of the Fre....

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....the appellant and the value of the goods must be excluded from the value of the services provided. h) It abatement under Notification No. 1/2006-ST dated 01.03.2006 is availed, the value of the services would be zero. i) The entire value of 75,39,550 Euros is towards the supply of the Freeze Drying Plant and does not involve provision of any service. B. Entire issue is revenue neutral as ....