TMI Blog2023 (11) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... t, maintenance and repair service - HELD THAT:- First of all, benefit of Notification No. 12/2003 would be available to the Appellant since, clearly in the present case invoice has been raised and VAT has been paid including on handling charges. As submitted by the learned Counsel, there is no basis to come to the conclusion that the value shown in the invoice should be equal to the cost and cannot be having any other additional element/ margin - In this case, there is no dispute that the Appellants undertake maintenance and repairs of ships and that is the main activity. When that is the main activity, procurement of paint would be for the purpose of providing the service of MMRS and therefore procurement alone, may not be chargeable sepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category of consulting engineering service Rs. 25,70,965/- 2. The issue involved in Appeal No. ST/30493/2018 is - whether service tax is payable on handling charges received by the Appellant and recovered as part of goods sold, subjected to VAT, under the taxable service category of business auxiliary services Rs. 3,94,831/-. 3. Heard the parties. 4. The facts of the case are that the Appellant is engaged in the manufacture and repair of ships. On the ground that, certain activities undertaken by the Appellant during the period from 2006-07 to 2010-11 amounted to providing of business auxiliary services (BAS) and management, maintenance and repair services (MMRS) and also taking the view that the Appellant was liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paint is procured by the Appellant on behalf of the ship owner and this conclusion comes from the agreement, which provides that the paint shall be procured by the Appellant and utilized and charged to the ship owner at cost+13% handling charges. According to the Revenue, since the paint is procured on behalf of the customer, the handling charge collected at 13% is for service of procurement and is classifiable under BAS. In our opinion, this stand cannot be sustained. First of all, benefit of Notification No. 12/2003 would be available to the Appellant since, clearly in the present case invoice has been raised and VAT has been paid including on handling charges. As submitted by the learned Counsel, there is no basis to come to the conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant replaced, namely HV/LV leg coil, transformer oil, etc., have already suffered excise duty or sales tax/ trade tax, as the case may be. Appellant therefore excluded the cost of these components which are separately accounted for in the agreement and filed service tax return in respect of the labour component of the service provided. The adjudicating authority however included the cost of the components incorporated as a component of the gross taxable value and assessed the liability to have into repair service and sales tax liability to tax and directed recovery of interest and penalty as well. 5. The issue is covered in favour of the assessee by the decision of this Tribunal vide Final Order No. A/402/12-Cus dt. 23.05.2012 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
