Service Tax Calculation Upheld: 85% Goods, 15% Services Valuation Method Validated by Judicial Review

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....In a dispute over taxable service value for works contracts involving goods and services, CESTAT resolved the valuation controversy. The tribunal affirmed the assessee's method of calculating service tax, where 85% was attributed to goods value and 15% to service component. The decision validated the invoiced value and confirmed VAT payment on goods portion. Relying on prior judicial precedent, the tribunal held that once VAT is paid according to state statutory provisions, the service value cannot be challenged. The appeal was ultimately dismissed, upholding the adjudicating authority's original determination of tax liability based on documentary evidence including chartered accountant certificates.....