TaxTMI 
TaxTMI 
2024 (4) TMI 326
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....reby confirmed under Section 73(1) of the Finance Act, 1994 and payment of t 51,500/- already made by party is hereby appropriated. 2) The party is hereby required to pay Interest on the unpaid service tax amount of 79,62,175/- (Seventy Nine Lakh Sixty Two Thousand One Hundred Seventy Five Only) under Section 75 of the Finance Act, 1994. 3) I hereby impose a Penalty (up to 09.05.2008) of 100 per day or 1% of such tax per month whichever is higher under Section 76 of the Finance Act, 1994 for failing to pay Service Tax. 4) I hereby impose a Penalty & 79,62,175/- ( Seventy Nine Lakh Sixty Two Thousand One Hundred Seventy Five Only) under Section 78 of the Finance Act, 1994 for suppressing the facts with intent to evade payment of service tax. 5) I hereby impose a Penalty of Rs. 10,000/ under Section 77(1)(a) of the Finance Act, 1994 for failing to take Service Tax Registration in time. 6) I hereby impose a Penalty of Rs. 10,000/- under Section 77(1)(c)(i) of the Finance Act, 1994 for failing to furnish information called by the Superintendent in his various letters and 21.06.2012. summons dated 7) I hereby impose a Penalty of t 10....
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....y Two Thousand One Hundred Seventy Five Only) not paid by them should not be demanded and recovered from them under section 73 (1) of the Finance Act, 1994 and payment of 51,500/- already made by them should not be appropriated against the demand. ii) Interest should not be charged on the aforesaid amount and recovered from them at the appropriate rate till the date of actual payment under Section 75 of the said Act ibid. iii) Penalty should not be imposed on them in terms of Section 76 of the Act ibid for failing to pay Service tax. iv) Penalty should not be imposed on them in terms of Section 78 of the Act ibid for suppressing the value of Service provided with intent to evade Service tax. v) Penalty should not be imposed upon them in terms of Section 77(1)(a) of the Act ibid for failing to take Service Tax Registration in time. vi) Penalty should not be imposed upon them in terms of Section 77(1)(c)(i) of the Act ibid for failing to furnish information called by the Superintendent in his various letters and summons dated 21.06.2012. vii) Penalty should not be imposed upon them in terms of Section 77(1)(c)(ii) of the Act ibid ....
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....ould have been computed. appellant was providing services to Krishi Utpadan Mandi Parishad, Sanjay Gandhi Post Graduate Medical Science, Lucknow, UPSIDC & UPRNN who are basically Government authorities and hence they fall under the excluded category for levy of service tax under this category. ➢ In case as alleged the services are classifiable under Management, Maintenance and Repair Service then also the value of the material consumed in provision of the said service should have been excluded in Notification No.12/2003-ST dated 20.06.2003. and its successor notification i.e. the value needs to be re-determined. ➢ the value of the material consumed for the provision of service is available in the balance-sheet and that should be excluded from the value for determination of taxable value for computing the service tax. 3.4 Learned Departmental Representative reiterates the finding recorded in the impugned order. 4.1 We have considered the impugned order along with the submissions made in the appeal and during the course of the argument. 4.2 In the present case though the appellant had made detailed submissions before the Commissioner ....
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....the said Act, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials. 2. This notification shall come into force on the 1st day of July, 2003." 4.4 This notification was amended by Notification No 12/2004-ST dated 10.09.2004 and following proviso was inserted at the end of opening paragraph: Provided that the said exemption shall apply only in such cases where- a) no credit of duty paid on such goods and materials sold, has been taken under the provisions of the Cenvat Credit Rules, 2004; or b) where such credit has been taken by the service provider on such goods and materials, such service provider has paid the amount equal to such credit availed before the sale of such goods and materials. 4.5 This Notification was rescinded vide Notification No 34/2012-ST dated 20.06.2012. Thus it is seen that benefit of this notification was admissible to the appellant during the entire period of demand in respect of services which have been provided consuming certain material for which documentary evidence is available. No difference has been made out on the basis of classification of the....
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....rom the gross value of the works contract the value of property in goods transferred in the execution of a works contract." 4.9 In case of Agrawal Colour Advance Photo System [2020 (38) G.S.T.L. 298 (M.P.)] Hon'ble Madhya Pradesh High Court has held as follows: "19. In view of the law laid down by the Apex Court in M/s. Pro. Lab's case (supra), it can be safely held that photography service, which has both the elements of goods and services is covered under works contract. Thus, in a works contract which involves transfer of property, the provisions as contained in Article 366(29A) of the Constitution are attracted. Therefore, in the light of sub-clause (b) of Clause (29A) of Article 366 of the Constitution, in execution of a works contract when there is transfer of property even in some other form than in goods, the tax on such sale or purchase of goods is leviable. In this view of the matter, after the 46th Amendment, there is no question of dominant nature test applying in photography service and the works contract, which is covered by Clause (29A) of Article 366 of the Constitution where the element of goods can be separated, such contracts can be subjected to sales....
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....consumed/sold by the service provider to the service recipient while providing the taxable service is available. However, the exemption is available only if the service provider maintains the records showing the material consumed/sold while providing the taxable service. The value of such material should also be indicated on the bill/invoice issued in respect of the taxable service provided." 7. A demand for levy of tax on the gross value of the service rendered including the cost of materials used and transferred was raised and answered against the assessee leading to an appeal before the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench at Chennai (hereinafter referred to as "Appellate Tribunal"). The learned Appellate Tribunal returned a split verdict with the Technical Member taking the view that the gross value of the service rendered would be exigible to tax under the Act. The third member (Technical) to whom the matter was referred held as follows : "21. From the foregoing, the following emerges : (a) There is no evidence of sale of materials in rendering the impugned service of "Maintenance and Repairs". (b) "Maintenan....
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....the goods or the parts used in the contract and sold to the customer amounts to seventy per cent (70%) of the value of the service rendered which is the taxable component under the State Act. The aforesaid argument overlooks certain basic features of the case, namely, the undisputed assessment of the assessee under the local Act; the case projected by the Department itself in the show cause notice; and thirdly the affidavit filed before this Court by one S. Subramanian, Commissioner of Central Excise, Salem. 12. No dispute has been raised with regard to the assessment of the appellant on its turnover under the local/State Act, insofar as payment of Value Added Tax on that component (70%) is concerned. A reading of the show cause notice dated 24th January, 2008 would go to show that the entire thrust of the Department's case is the alleged liability of the appellant-assessee to pay service tax on the gross value. In the aforesaid show cause notice, the details of the value of the goods, raw materials, parts, etc. and the value of the services rendered have been mentioned and service tax has been sought to be levied at the prescribed rate of ten per cent (10%) on the differe....