2023 (1) TMI 991

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....upplied claiming the benefit granted under Notification No. 12/03-ST dated 20.06.2003. The department proposing denial of benefit of Notification No. 12/03-ST dated 20.06.2003 issued a show cause notice dated 01.09.2010 considering the gross value i.e. including cost of material and service provider. The adjudicating authority vide order-in-original dated 08.12.2011 extended the benefit of Notification No. 12/03-ST dated 20.06.2003 and dropped the demand of service tax to the extent of value of material supplied. The department, being aggrieved by the order-in-original dated 08.12.2011 filed an appeal before the Commissioner (Appeals)/RBT/RAJ dated 23.07.2012 who set aside the order passed by the adjudicating authority to the extent of serv....

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....ice to the above submits that it is admitted fact the appellant have provided the service along with material, therefore, the appellant are otherwise eligble for abatement under Notification No. 15/04-ST and 01/06-ST whereunder the abatement of 67% of the value is available and the service tax was payable only on 33%. However in the present case, the appellant have paid service tax on the part of gross value which is more than 33%, for this reason also, the demand is not sustainable. He further submits that as regard the Revenue's contention that the service is in the nature of repair and maintenance service, therefore, the appellant is not eligible for any exemption, he submits that as per the Hon'ble Supreme Court, judgement in the case o....

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.... the facts of the present case is whether the appellant is eligible for exemption Notification No. 12/03-ST which provides the abatement of value to the extent of material cost and whether the demand on service tax is otherwise sustainable on the submission of the appellant that they are eligible for composite contract scheme alternatively abatement Notification No. 15/2004-ST and 01/2006-ST. We find that from the invoices, the appellant have declared the service charges and cost of material separately. The adjudicating authority after considering the invoices, books of accounts, audited annual accounts, copy of VAT returns, income bills etc., came to the conclusion that since the cost of material is identifiable, the same is liable to be d....

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....of the appellant has admittedly, the appellant have provided the service along with material. Therefore, by identifying the cost of material, the appellant is eligible for deduction of 67% from the gross value of the service and they are leiable to pay service tax on 33% of the gross value. The appellant have submitted a chart as below: Sr. No. Year Material Cost Service Part Total Invoice Value % of the Abatement taken 1 2005-2006 6,9,878 7,10,004 13,89,882 48% 2 2006-2007 69,12,420 87,53,716 1,56,66,136 44% 3 2007-2008 27,42,501 52,46,885 79,89,386 34% 4 2008-2009 13,75,862 31,50,068 45,25,930 30%   Total 1,17,10,661 1,78,60,673 2....