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2020 (1) TMI 145 - AT - Service TaxRepairs and maintenance service - Composite service or not - inclusion of value of the materials used in rendering Repairs and Maintenance Service - appellant discharged service tax on service portion and paid sales tax on material component - Department was of the view that the being composite contract the entire value including the material component has to be taken for the purpose of determining the taxable value of services - demand of differential duty along wit interest and penalty - HELD THAT:- In SAFETY RETREADING COMPANY (P) LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, SALEM, M/S TYRESOLES INDIA PRIVATE LMITED VERSUS THE COMMISSIONER OF CENTRAL EXCISE, GOA AND M/S LAXMI TYRES VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE [2017 (1) TMI 1110 - SUPREME COURT] the issue has been decided, where the Hon’ble Apex Court took the view that the spare parts/materials used for repairs and maintenance cannot be said to have been not sold to the customers. In any annual maintenance contract, the spare parts etc., which have been used in the course of maintenance service are definitely considered to be sold and when sales tax has been paid on the value of such goods, simultaneously, one cannot charge them to service tax. In the present case, the demand raised herein is on the value of materials, on which VAT has already been discharged. The demand do not sustain - appeal allowed - decided in favor of appellant.
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