2019 (11) TMI 565

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ervice of erection and installation are provided by the foreign party to the appellant. Therefore, the appellant is liable to pay service tax on the reverse charge mechanism in terms of section 66A of Finance Act, 1994. For this purpose, the sale value of the machine is artificially bifurcated by applying the notification 19/2003-ST dated 21/03/2003 whereby the 33% was taken as service and service tax was demanded on such portion. 2. Shri Amal Dave, Ld. Counsel appearing on behalf of the appellant, submits that there is not separate contract for services of erection and installation. The entire transaction is for sale and purchase of bubble wrap manufacturing machines. The invoice by the foreign supplier was raised for sale of the machine ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... The erection and installation is incidental to the sale/supply of the machine. Therefore, the entire transaction is of sale and purchase of the machine and, hence, no service is involved. Therefore, no Service Tax can be demanded. This issue is squarely covered by the Tribunal judgment in the case of Bhavik Terryab (supra) wherein the Tribunal has passed the following order. "5. We have heard both sides and perused the appeal records. We note that there is a certificate issued by the jurisdictional Superintendent of Central Excise on 07.07.2006 in connection with the appellant's obligation under the ECCG Scheme indicating the installation of 2 of the machines prior to 18.04.2006. Similarly, there are certain indications, based on the co....