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2013 (8) TMI 145 - AT - Service TaxValuation - exclusion of cost of goods sold - Service tax only on Labour Charges under Management, Maintenance or Repair service and are not paying service tax on entire cost of repair including the cost of various items replaced during the repair of transformers though said repair is being done under a composite agreement - During the course of repairs, Respondents are replacing LV/HV Leg coils, Transformer Oil and other items - Contract shows that rates quoted in contract are exclusive of Excise duty, VAT/Sale Tax and Service tax. There is no dispute that the VAT has been paid by the Respondents on cost of LV/HV Leg coil, Transformer oil other supplies items Notification No. 12/2003-Service Tax dated 20.6.2003 – Held that:- Under Notification No. 12/2003-Service Tax dated 20.6.2003, value of goods and material sold by the service provider to service recipient is exempted subject to the condition that there is documentary evidence indicating value of goods/material - Value of goods/material is separately shown in contract itself for each category of transformers. Moreover VAT has been paid on these goods/materials. Therefore there is no reason to deny the benefit of Notification No. 12/2003 dated 20.06.2003 to the Respondents – Decided against the Revenue.
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