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2018 (10) TMI 1993 - AT - Service TaxLevy of Service Tax - incentive received under dealership agreement with Maruti - sale of spare parts during the servicing of the vehicle - RTO charged required for a registration with RTO for getting the sold vehicle registration - CENVAT Credit on various input services - HELD THAT:- These issues have been decided in favour of appellant in the identical set of facts and circumstances by TOYOTA LAKOZY AUTO PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX/CENTRAL EXCISE MUMBAI -II / MUMBAI - V [2016 (12) TMI 541 - CESTAT MUMBAI] where it was held that This Tribunal, in its recent order in M/S ARPANNA AUTOMOTIVE PVT. LTD. VERSUS COMMISSIONER OF CUSTOMS & CENTRAL EXCISE [2016 (3) TMI 308 - CESTAT MUMBAI], held that the Service Tax liability confirmed under Business Auxiliary Service for the amount of RTO registration fees is set aside. Service tax on the handling charges incurred by the appellant while selling motor car from M/s Maruti Udyog Ltd. - HELD THAT:- This issue is also covered in favour of appellant by the decision of this Tribunal in case of AUTOMOTIVE MANUFACTURERS PRIVATE LTD VERSUS COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS, NAGPUR [2015 (2) TMI 972 - CESTAT MUMBAI], wherein it was held that we do not understand how service tax levy would apply especially when the goods are subject to sales tax/VAT on a value inclusive of handling charges. It is not in dispute that the handling charges are incurred in connection with the procurement of the parts. If that be so, they will obviously form part of the value of the goods when they are subsequently sold. Sale of spare part, sold while servicing of the motor vehicle, which the department intends to include in assessable value in terms of Section 67 of the Finance Act for payment of service tax - HELD THAT:- The issue decided in favour of appellant in M/S TANYA AUTOMOBILES PVT LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, MEERUT-I [2016 (1) TMI 704 - CESTAT ALLAHABAD] where it was held that the cost of items supplied/sold and there is documentary proof specifically indicating value of the goods, the demand of Service Tax against the assessee for the cost of the goods supplied during repair does not appear sustainable. In this view of the matter, we set aside the impugned order and allow the appeal with consequential benefits. CENVAT Credit on various input services - HELD THAT:- The same has been paid along with interest before issue of Show Cause Notice and the same, therefore, stands settled. The issue is settled in favour of the appellant and hence the impugned order is not sustainable - appeal allowed partly.
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