TaxTMI 
TaxTMI 
2025 (5) TMI 1822
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....Appellant had paid Value Added Tax("VAT") on the supply of materials and service tax on the entire service portion of the contract. The Appellant had availed CENVAT Credit of service tax paid on input services which were used for provision of Works Contract Service by taking recourse to the provisions of the CENVAT Credit Rules, 2004. 2. A Show Cause Notice was issued on 23 October 2013 for the period 2008-09 to 2011-12 by invoking the extended period. It was alleged that as the Appellant had availed CENVAT credit on inputs and input services used both for dutiable and exempted works contract services and thus they are required to comply with the provisions of Rule 6(3) of the CCR which provides for a payment of 5%/6% of the value of exempted services. During the period 2009-10 to 2010-11, the Appellant had provided services to SEZ valuing Rs. 43,09,68,913/. Thus, it was alleged that the Appellant is liable to pay an amount equal to 6%/5% of the value of exempted service which amounted to Rs. 2,35,87,701/-. 3. In respect of the Works Contract services, the Appellant had entered into two separate agreements with customers, one for the supply of materials and the other for the ....
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....he same, he should rebut with proper reason. The Appellant relies on following judgments- a) Kirloskar Brothers Ltd. 2025 (1) TMI 890 - CESTAT KOLKATA b) Gillette India Ltd. 2023 (11) TMI 154 - CESTAT CHANDIGARH 5.4 Additionally, the Appellant also submitted Annexure G to CST Return for period 10-11,11-12& 12-13 in support of their claim that transactions on which Service Tax demand has been raised, were duly disclosed in the commercial tax Returns. Thus, the demand of service tax of Rs.67.92 lakhs which have been worked out on the difference of purchase and sale value of goods supplied by appellant is without any base. 5.5 It is a settled law that service tax cannot be levied on that portion of the value representing the sale of the goods on which sales tax has been charged. In the present case it is admitted that consideration is towards value of goods and as such service tax cannot be demanded on the same. The Appellant relies on following judgments- • Imagic Creative Pvt. Ltd. [2008 (9) S.T.R. 337 (S.C.)] • Delux Colour Lab Pvt. Ltd. [2009 (13) S.T.R. 605 (Tri.-Del.)] • Bharat Sanchar Nigam Ltd. [(2006) 3 SCC 1] ....
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....itted that at time of self-assessment as well as at the time of initial stage of filing of reply the Appellant has always been of the opinion that they are not liable to pay service tax on the impugned transaction as the same pertains to supply of material on which CST/VAT has been discharged and they have been filing returns accordingly. The Appellant relies on following judgments- • GD Goenka Pvt. Ltd. [(2023) 11 Centax2 (Tri.-Del)] • M/S. Dinesh Chandra R Agarwal Infracon Pvt Ltd. [2023 (11) TMI 1080] • The Surat District Coperative Milk Producers Union Ltd [2024 (5) TMI 196-CESTAT Ahmedabad • Delhi Airport Metro Express Pvt. Ltd. [2024 (1) TMI 777 - CESTAT New Delhi] 7.5 As whole case is that of interpretation of the provisions of Service Tax (Determination of Value) Rules,2006 extended period is not invokable. The Appellant rely on following judgments- • Gainwell Commo sales Pvt. Ltd. [(2024) 22 Centax 9 (Tri.-Cal)] • Raghava Estates & Properties Ltd [(2024) 23 Centax 6 (Tri.-Hyd)] 7.6 The Appellant submits that facts in Neminath Fabrics(P)Ltd. [2010(256) ELT 369 (Guj.)], the Hon'ble Gujarat Hi....
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.... 13. We find that an identical issue had come up before the coordinate Bench at Ahmedabad in the case of HAMON SHRIRAM COTTREL PVT LTD VERSUS COMMISSIONER OF C.E. & S.T.-VAPI - 2024 (4) TMI 628-CESTAT AHMEDABAD. The Tribunal has held as under : 1.2 Irrespective of the type of contract entered into by the Appellant, separate values of the goods supplied and the values towards erection, commissioning and installation services of cooling towers are available, which are separately disclosed in the executed contracts and on the invoices raised. Thus, there is clear basis of bifurcation between the supply of goods and the supply of services. The Appellant discharges the appropriate excise duty / sales tax / VAT in respect of the value of transfer of property and goods and service tax in respect of the value of erection, commissioning, installation services etc. The Appellant manufactures certain parts of the cooling towers in their manufacturing unit for execution of contract entered into for installation of cooling towers, while other parts required thereof are procured from independent suppliers and supplied directly to the customer's site on sale-in- transit basis, Good....
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....re mutually exclusive. Further, it was observed that even in case of indivisible contracts, it would be difficult to hold that the entire contract value be subjected to service taxor VAT. 4.12 In the present case undisputedly there is a separate transaction of sale of goods right from beginning that it is much before of execution of contract and the appellant have discharged the VAT/CST. Therefore, in view of the above settled legal position the sale of goods by any stretch of imagination cannot be brought into for levy of service tax. 4.13 As per over above discussion and finding we are of the clear view that no service tax can be demanded on the sale of goods or by way of including the value of goods in the service. Further as per the contract and the transaction made thereunder there is clear distinction between the provision of service and transaction of sale of goods therefore the service has been correctly classified under erection commissioning and installation service and paid the service tax correctly. 14. We find that the ratio laid down in the above case law, wherein the judgements of Supreme Court have been relied on, is squarely applicable to the f....
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....ed the financial statements, VAT and Sales Tax Returns filed by the Company and all related workings and annexures prepared by the Company for the period 2008-09 to 2012-13. The Company undertakes industrial projects for Cooling Towers including supply of cooling tower components, construction of cooling tower structure at customer premises, erection of components supplied. The Company has five manufacturing units across the country for manufacturing of cooling tower components and the supplies are made to the customer premises on payment of applicable excise duty and sales tax/VAT. Civil structure and erection work is undertaken by the Company at customer premises and applicable service tax is paid on the same. For the Cooling Towers to perform and its integration with the machinery of the customer, certain structural fittings such as pipes, valves, etc. and electrical fittings including cables, motors, etc. is procured by the Company and dispatched directly to customer premises, for the purpose of said execution, as transit sales under Section 6(2) of Central Sales Tax Act. As per the provisions of the Section 6(2) of the Sales Tax Act, the Company makes direct dispatches b....