Customs, Excise and Gold Tribunal - Delhi
Allengers Medical Systems Ltd. vs Commissioner Of C. Ex. on 30 March, 2007
Equivalent citations: [2008]12STT65
ORDER C.N.B. Nair, Member (T)
1. Heard both sides and perused the record. The appellant manufactures and sells medical equipments. Service tax has been demanded on the invoice value of sales of equipment on the ground that the price of the machinery included charges towards installation and commissioning, which are liable to Service tax.
2. It is being pointed out that the items in question are portable/movable equipment requiring no erection and commissioning. Another point made is that on the entire value of the machine, excise duty has been paid. Contention being that, if at all, a portion of the value is to be treated as cost of installation/commissioning, the demand can be made only after abetting the excise duty paid on the same.
3. The basis of demand does not appear to be, prima facie, sustainable. Stay application is allowed and recovery stayed till disposal of appeal.
(Pronounced in the open Court)