2015 (8) TMI 804

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....ndering of the said services, the appellant also used materials and consumables. They charged consideration for the services rendered by way of repair charges, materials charges and charges for the consumables. They discharged Service Tax liability on the labour charges and the consumable charges. However, they did not discharge Service Tax on the value of the materials supplied to the service recipient during the course of rendering of the services. Accordingly, show-cause notice was issued to the appellant demanding Service Tax of Rs. 12,11,28,684/- for the period April, 2005 to March, 2011. It appears from the records that the appellant, though claimed exclusion of the value of the materials supplied, did not produce before the adjudicat....

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....ntractors. (iii) It is also their contention that since the containers are exported, there is no VAT/Sales Tax liability; however in their returns they have shown the value of the materials supplied and from this documentary evidence, the value of the materials supplied to the customers during the rendering of the service can be ascertained. Similarly, the sub-contractor's VAT/Sales Tax returns also indicate the value of the materials supplied during the rendering of the services. (iv) Thus, it is their contention that they have documentary evidence in support of the abatement of value claimed and if they are given an opportunity, they can submit these documents to the adjudicating authority in support of their contention that they are ri....

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....of the quantity and value of materials supplied. The appellants have also furnished a copy of the VAT Returns filed by them before the jurisdictional VAT authorities, wherein they have claimed exemption from tax in respect of the materials supplied. They have also produced a Chartered Accountant's certificate certifying that the appellants have sold the materials and the figures given in the VAT Returns are correct. The sub-contractors have also confirmed the value of the materials supplied on which Service Tax has been demanded by the adjudicating authority. Since the issue relates to verification of factual details, we are of the considered view that the matter has to go back before the adjudicating authority for consideration afresh of a....