2015 (9) TMI 112

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....te : for the appellant Shri B.K. Singh, Spl. Counsel, for the respondent JUDGEMENT P.S. Pruthi, j The appellants are engaged in supply, erection, commissioning and installation of lifts and elevators. A demand of Rs. 1,22,59,41,753/- has been confirmed and equivalent penalty under Section 78 of the Finance Act, 1994 has been imposed against them for the period 1.6.2007 to 31.3.2012. Al....

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.... Section 65(105)(zzzza) and denying the benefit of exemption under Notification No.12/2003-ST dated 20.6.2003, which grants exemption from service tax equal to the tax leviable on the goods sold by the service provider. The case is that the appellants have not discharged VAT liability on actual value of the goods and also discharged service tax liability on notional value of 20%. It was proposed t....

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....service is classified under works contract, they have correctly paid the service tax. They have drawn attention to Rule 2A of the Service Tax (Determination of Value) Rules, 2006, which provides that value of works contract service determined shall be equivalent to the gross amount charged for the works contract less the value of transfer of property in goods involved in the execution of the work....

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....able. Service tax cannot be demanded on the portion of value which is the value of goods involved in the execution of the contract. Evidence has been presented by the appellants evidencing that VAT has been paid on the material component. Certified documents show that the material component has suffered VAT. In view of this, the matter needs re-verification by the adjudicating authority. According....