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2018 (6) TMI 793 - AT - Service TaxManagement, Maintenance or Repair Service - it was alleged that the appellant has artificially bifurcated the value of service part and cost of materials as 70% and 30% - The department was of the view that division of contract so that the payment of VAT is made on 70% of the maintenance charges and discharge of service tax only on 30% is incorrect - Held that:- It is not disputed that the appellant has discharged sales tax/VAT on the 70% of the value being the cost of materials. It is also admitted that such supply of spares is necessary for provision of services. When VAT has been discharged by the appellant on 70%, the contract being a composite contract and VAT/Service Tax being mutually exclusively, the further demand of service tax on the amount for which VAT has been paid by the appellant cannot sustain - demand do not sustain - appeal allowed - decided in favor of appellant.
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