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2013 (10) TMI 1214 - AT - Service TaxValuation - value of free services provided during warranty period - inclusion of cost of parts / spares in the value – Waiver of Pre-deposit - Revenue was of the view that the goods were required for providing services and disputed that cost of such parts would form part of the value of taxable service – Assessee contended that the Revenue has demanded service tax considering the value of parts as reimbursable expenses as per Rule 5 of the Service Tax Valuation Rules and contend that this rule has been struck down - Held that:- Prima facie materials consumed in providing service as in re-treading of tyre was different from parts replaced as in servicing of vehicles because in the matter the transaction for the material is easily discernible as distinct - We take note of the decision of the Apex Court in the case of they relied on the decision of the Hon. Apex Court in the case of Bharat Sanchar Nigam Ltd. Vs UOI [2006 (3) TMI 1 - Supreme court] in a composite transaction involving both supply of material and providing of service the state governments and the central government can tax only the respective aspects falling within its legislative competence and both the governments cannot levy tax on the same aspect – Pre-deposits was waived till the disposal the of the appeal – Stay granted.
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