2017 (3) TMI 1507

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.... Rajeev Ranjan (Joint Commissioner) AR Present for the Respondent: Shri Sita Ram (Consultant) Per: Anil Choudhary 1. The Revenue is in appeal against Order-in-Appeal dated 31/12/2013 whereby it has been held that the respondent assessee have admittedly used materials in the repair/rewinding and installation work done for the principal and accordingly the cost of the materials is transferr....

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....on the labour charges, thus have short paid tax. 3. Heard the parties. 4. On perusal of the document of contract between the respondent and the principal, under the head service tax, it has been mentioned - service tax shall be paid extra as legally applicable. This charge shall be paid on 20% amount of the order/contract value. The contract further provides all copper scrap generated in the....

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....The ld. Commissioner also found that out of the gross amount received Rs. 1,75,53,314/- during the period under dispute, the respondent paid service tax of Rs. 7,64,879/- as against total calculated amount of service tax of Rs. 18,15,437/- meaning thereby that respondent paid service tax on approximately 42% of the gross value of the contract value. It was also noticed that, as per the C.A. Certif....

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....w of these clear legal provisions, there is absolutely no justification for levy of service tax beyond 40% of the value of the total contact. I would like to state that the data provided by the appellant shows that the adoption of 40% of the value of the contract towards value of services rendered appears to be reasonable in the light of the payment of sales tax on the 60% value which has also bee....