TMI Blog2017 (3) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible on the same - appeal dismissed - decided against Revenue. - ST/Cross/51468/2015, ST/Stay/53203/2014, ST/52843/2014-CU[SM] - A/70242/2017-SM[BR] - Dated:- 6-3-2017 - Shri Anil Choudhary, Member (Judicial) Present for the Appellant: Shri Rajeev Ranjan (Joint Commissioner) AR Present for the Respondent: Shri Sita Ram (Consultant) Per: Anil Choudhary 1. The Revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly not been sold to the buyer as the invoice has been raised for the work of repair done under complete contract and complete repair package cost has been charged by the parties. The Respondent was paying Vat on the cost of goods or materials and Service Tax only on the labour charges, thus have short paid tax. 3. Heard the parties. 4. On perusal of the document of contract between the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Karnataka High Court in the case of Modi Xerox Ltd. versus State of Karnataka reported in 1999 (14) STC 424 (KAR) wherein it is held, in Annual Maintenance Contract the supply of materials can be considered a sale which are been affirmed by honourable Supreme Court. The ld. Commissioner also found that out of the gross amount received ₹ 1,75,53,314/- during the period under dispute, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be considered as sold and when sales tax has been paid on the value of such goods, simultaneously one cannot charge them to be service tax. The certificate of Chartered Account furnished by the appellant also depicts that they have purchased the material utilized on payment of VAT. In view of these clear legal provisions, there is absolutely no justification for levy of service tax beyond 40% of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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