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For such services, the appellant raises a separate Bill. There are also composite contracts involving both supply of goods as well as providing application services. In those cases where the services are rendered through separate contracts, the appellant claims to have paid Service Tax. In respect of certain composite contracts, involving supply of goods and providing application services, where no separate price for services is ascertainable, the appellant discharges Central Excise Duty on the entire contractual price. The dispute, however, is in respect of certain composite contracts in which separate amounts have been indicated for supply of goods as well as services. In such cases, the appellant discharges Excise Duty only on the component of value attributable to goods. Revenue was of the view that Excise Duty was required to be paid on the composite price of the contract. On these lines, Show Cause Notice dated 09/02/2005 was issued proposing to demand differential duty for the period June to December, 2000. The Appeal No. E/60/2009 Adjudicating Authority upheld the demand of duty and the same is challenged in the present proceedings.

(iv) In cases of composite contracts, since prices of the goods to be sold and the Application Services to be rendered are also composite, no separate price for the Application Services under the goods are ascertainable. In such cases, the appellants take the entire contractual price as transaction value and pay duty of excise accordingly.

(v) In respect of Application Services rendered under a separate contract, the appellant is paying service tax on the Appeal No. E/60/2009 value of the taxable service rendered in accordance with Finance Act, 1994.