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2018 (7) TMI 2026 - CESTAT KOLKATAMaintenance and Repairing Services - taxability of maintenance charge of the machine provided on hire - HELD THAT:- The appellant had hired machines to the client for hire charge of ₹ 1 lakh per month. During this period, maintenance charges for said machines were stipulated @ ₹ 3.00 lakhs per month and the ownership of the machines remains with the appellant. For the period in dispute the machines were in use by the client and for such use the maintenance services were provided that this activity will be clearly fall under the definition of ‘Maintenance and Repair Service’. However, since the appellant did not collect the service tax from its customers/clients, the benefit of cum tax value in terms of Section 67(2) of the Finance Act, 1994 should be given to the appellant. Penalties - HELD THAT:- There are no ingredients of suppression of facts, misstatements with an intent to evade payment of service tax - penalty set aside by invoking section 80. Appeal allowed in part.
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