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2013 (9) TMI 553 - AT - Service TaxAuthorized Service Station - Business Auxiliary Service - Duty to be charged on what portion - Appellant were engaged in the business of providing services of Authorized Service Station for Maruti brand vehicles - The department was of the view that the appellant was liable to discharge Service Tax liability on the whole of the amount charged and not on the services portion alone - Whether spare parts sold by a service station during the servicing of vehicles is liable to payment of service tax – Held that:- The matter was remanded back to the adjudicating authority for consideration afresh of the contention of the appellant that the cost of spare parts sold cannot be included in the value of the services rendered - The appellant was also directed to submit all documents and evidences in support of their claim that they have discharged Sales Tax/VAT on the spare parts sold during the course of rendering the service. The cost of spare parts sold during the rendering of service cannot form part of the transaction value - The Board's Circular dated 23.08.2007 also confirmed the above position - Appellant contended that the transactions which involved only sale of spare parts without rendering of the service - In those cases, the levy of Service Tax would not arise at all - In the bills raised, the appellant had clearly indicated the quantity and value of the goods sold and the Sales Tax/VAT liability discharged - They had also indicated the charges collected for the services rendered and the Service Tax liability - the appeal was allowed by way of remand.
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