In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the recipient of service, from the service tax leviable thereon under section (66) of the said Act, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials.

Provided that the said exemption shall apply only in such cases where-

(a) no credit of duty paid on such goods and materials sold, has been taken under the provisions of the Cenvat Credit Rules, 2004; or

(b) where such credit has been taken by the service provider on such goods and materials, such service provider has paid the amount equal to such credit availed before the sale of such goods and materials.

(Above proviso has been inserted vide Notification No. 12/2004-ST, Dt. 10/09/2004)

2. This notification shall come into force on the 1st day of July, 2003.

[F.No. B3/7/2003-TRU]

(V. Sivasubramanian)
Deputy Secretary to the Government of India

(Please see Circular No.67/16/2003-CX(ST), DT. 10/11/2003 for Repairing area of a Ship/Vessel by supplying huge Qty. of MS Plates)

(Please see Notification No. 19/2003-ST, DT. 21/08/2003)