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2013 (8) TMI 745 - AT - Service TaxMarketing, Selling and After Sales Services - Valuation - assesse was not paying service tax on cost of spare parts reimbursed – Revenue was of the view that the assesse should had paid service tax on the value of service inclusive of the material used - Held that- There cannot be levy of service tax on value of spare parts used in repair service of motor vehicles - In such activity the cost of materials and the service itself can be clearly vivisected and was perceived as separate components by customers –relying upon BSNL Vs. UOI [ 2006 (3) TMI 1 - Supreme court] - there was no proof regarding value of goods involved – the reimbursement claims for value of goods show the items used and price of each item. The argument of Revenue that spare parts of motor vehicles used in repair was of the same nature as chemicals used in photography because the former are in the nature of spare parts where a sale prior to replacement is acceptable as a concept and the latter has the nature of consumables cannot be accepted – Rule 6 (1) (vi) of Service tax (Determination of Value) Rules 2006 does not specifically state that the rule was about cost of spare parts. Prima facie case is in favor of assessee - stay granted.
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