Thursday, 1 May 2014

Work contract - exclusion of value of goods and material sold by service provider

M/s S K ENGINEERING WORKS Vs CCE (2014-TIOL-602-HC-ALL-ST)

Facts of case:
It is evident from record that the work contract of petitioner included service as well as supply of material. The Central Government had issued notification dated 20.06.2003 provided that value of goods and material sold by service provider to the recipient of service shall be exempted from service tax liable under Section 66 of the Finance Act, 1994 but admittedly the Assessing
Authority while passing impugned order has completely ignored aforesaid notification for the reasons best known to him though he must be well aware of the said notification issued by Central Government.
Held:
In the result, the writ petition is allowe - view taken by assessing authority is not justified and, therefore, matter remanded for passing of fresh order in the light of the notification dated 20.06.2003
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