Duty paid on irrection & instalation process

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This query is : Resolved

ppjoshi (Querist)

03 February 2014 sir,
we are mfg a DG set
we have got dg set order from customer DG set with instalation at customer site
we are done manufacturing process in our factory premises ,
we are take cenvat credit on RM of consume in DG set, after completation of DG set we are despatched to customer with full payment of excise duty,
now after gone on site of customer we are give a service of instalation and commissining for this dg set,(including RM used in this instalation process )
we are brought this instalation material in our factory premised due to safety purpose and does not take any cenvat credit of this material, we are sending this material at site on commercial invoice,
my question is
dept say during audit you are liable to pay excise duty on instalation and commissioning process and not to send any material on commercial invoice without paymnet of excise duty
we are already pay service tax on this process,

pl tell me sir we are liable to pay excise duty on this instalation & commissioning process if yes or no pl ask me any case details for reference this point

Arun Kumar Singh

Arun Kumar Singh (Expert)

03 February 2014 Duty is depend upon the activity of goods and services. Installation and commissioning is a service if you provide these services then service tax will be applicable excise duty will not applicable on service provided by you. You should consult with any professional.

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