2010 (10) TMI 792 - AT - Service Tax

Whether an assessee engaged in rendering services of repairs and maintenance to its customers having utilized various articles for providing effective repairs and maintenance would be entitled to avail the benefit of the Notification No. 12/2003-S.T., dated 20-6-2003 in relation to such articles - decision of the Tribunal in the matter of Agrawal Colour Advance Photo System v. CCE (2010 -TMI - 77640 - CESTAT, NEW DELHI) wherein similar issue had arisen and/has been sought to be referred for decision by a Larger Bench, in the view what is stated above and particularly taking into consideration the divergent views expressed by different Benches of the Tribunal and the Courts on the point in issue and the reference sought to be made in relation to the said issue to the Larger Bench, it would be appropriate to refer the said issue to the Larger Bench in this case also, Registry is therefore directed to place the matter before the Hon ble President for necessary order for reference of the matter to the Larger Bench on the above issue

Summary

Issues: Interpretation of Notification No. 12/2003-S.T. regarding goods and materials consumed in rendering repair and maintenance services; Whether "value of goods and materials sold" includes goods consumed; Reference to Larger Bench for divergent views on the issue.

The judgment by the Appellate Tribunal CESTAT, Bangalore, involved the interpretation of Notification No. 12/2003-S.T. concerning whether an assessee providing repair and maintenance services, utilizing various articles for the services, could avail the benefit of the notification in relation to the goods and materials consumed during the service provision. The key question was whether the term "value of goods and materials sold" in the notification encompassed goods and materials consumed during the repair and maintenance services. Additionally, the judgment considered if the term "sold" included any "deemed sale." The Tribunal noted a similar issue in the case of Agrawal Colour Advance Photo System v. CCE and the reference to a Larger Bench for decision.

The Tribunal, in light of the divergent views expressed by different Benches and Courts on the issue at hand, decided to refer the matter to a Larger Bench for clarification. The decision was influenced by the need to address the varying interpretations and seek uniformity in understanding the scope of the notification regarding goods and materials consumed during the provision of repair and maintenance services. Consequently, the Registry was directed to present the case before the Hon'ble President for the necessary order to refer the issue to the Larger Bench for resolution. This step aimed to ensure consistency and coherence in the application of the relevant legal provisions and to clarify the ambiguity surrounding the interpretation of the notification in question.