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March 2012

(2012) 25 STR 30 (Tri.-Delhi) — Agrim Associates Pvt. Ltd. v. Commissioner of Sales Tax, Delhi.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 2 mins
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Appellant engaged in provision of service classifiable as ‘Commercial or industrial construction service’ from time to time and availed benefit under Notifications No. 15/2004-ST and 1/2006-ST and availed abatement of 67% — Revenue of the opinion that the value of Free of Cost (FOC) materials should be included in the gross value before availing such abatement — Held that only value of materials supplied should be included and value of FOC material not to be included in gross value on which abatement of 67% is granted — Stay of pre-deposit granted.

Facts:
The appellant provided ‘Construction service’/ ‘Commercial or industrial construction service’ and availed benefit under Notification No. 15/2004-ST and Notification No. 1/2006-ST for respective period of time. The Revenue contested that appellant provided completing and finishing services and hence abatement under Notification 1/2006-ST could not be availed. Also, it was argued that in order to avail such abatement, the gross value of revenue should include Free of Cost (FOC) materials before availing abatement of 67%.

Held:
It was held that the appellant was eligible to claim exemption under the said Notification and a complete waiver of the demand before the appeal was allowed and a stay order was sustained on collection of all demands arising out of the order during the pendency of the appeal.

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