Friday, 2 March 2018

HC : Directs reconsideration of excise duty on supply & installation of customised IT products


HC exercises writ jurisdiction to set aside adjudication order confirming excise duty liability on activity of supply of IT products purchased from vendors and installation at customers’ premises after customization as per their needs; Notes assessee’s claim that integrating multiple products sourced from different vendors only involved a skill of service and nothing else, accordingly it had paid service tax thereon; Seeking to set right the jurisdictional error committed in decision making process, HC observes that each of assessee’s activities would require to be examined on focal point whether they would fall within the meaning of manufacture of goods or not; There cannot be generalization of assessee’s activities, states HC while observing, “No doubt, the law discussed by the Commissioner is the correct principles revolving around the issue. But, the point is whether each of the activities of the petitioner would fall for consideration as a 'manufacturer of goods' or not.” ; Accordingly, remands the matter for fresh consideration, without expressing any view on merits  : Kerala HC

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