Service tax cannot be demanded on installation activity when excise levied on entire value of supply of machinery

C.C.E & S.T.-Silvasa Vs Aalidhra Textool Engineers Pvt Ltd (CESTAT Ahmedabad) CESTAT Ahmedabad held that as excise duty is levied on the entire value of supply of machinery. Hence, service tax cannot be demanded separately on activity of erection, commissioning and installation of the said machinery. Facts- The respondents are 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. The respondent ha...