The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench held that no service tax can be demanded on erection, installation and commissioning of service as entire value suffered excise duty. The respondent, Aalidhra Textool Engineers Pvt Ltd is engaged in the manufacturing of textile machineries. As per the contract with the buyer, on an agreed sales price, the respondent is under obligation to manufacture, pack, transport, deliver and erect and install the machinery at the buyer’s site.
Source Taxscan
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