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2013 (12) TMI 1013 - AT - Service TaxDemand of service tax - Benefit of Notification No. 12/2003-S.T - whether the cost of spare parts, which the appellant used while repairing transformers is required to be added in the value of the service so provided by them, for the purpose of service tax - Held that:- there is clear finding by the Commissioner that the proper taxes have been paid on such goods which are used in providing service. However, he has not extended the benefit to the appellant by simply observing that replacement of parts was an integral condition of the contract and without fulfilling that condition the contract cannot be said as completed. At this prima facie stage, we find that the above observations made by the Commissioner are against the said declaration of the law, in the above referred decisions. At this stage, we also take note of the Board’s Circular No. 96/7/2007-S.T., dated 23-8-2007 laying down that the value of spare parts sold by a service provider is not required to be taken into consideration if the same are subjected to levy of sales tax and VAT and there is clear evidence to show the sale of the same. Circular further goes on to say that the fact of payment of VAT/sales tax on a transaction value indicates that the said translation is treated as sale of goods - Prima facie case in favour of assessee - Stay granted.
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