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2023 (11) TMI 612 - AT - Service TaxLevy of Service Tax - handling charges received by the Appellant and recovered as part of goods sold, subjected to VAT, Business Auxiliary Services or not - paints procured by the Appellant and used for repairing activities, management, maintenance and repair services or not - design charges paid by the Appellant to the companies outside India, under reverse charge, consulting engineering service or not. Business Auxiliary services - Management, maintenance and repair service - HELD THAT:- First of all, benefit of Notification No. 12/2003 would be available to the Appellant since, clearly in the present case invoice has been raised and VAT has been paid including on handling charges. As submitted by the learned Counsel, there is no basis to come to the conclusion that the value shown in the invoice should be equal to the cost and cannot be having any other additional element/ margin - In this case, there is no dispute that the Appellants undertake maintenance and repairs of ships and that is the main activity. When that is the main activity, procurement of paint would be for the purpose of providing the service of MMRS and therefore procurement alone, may not be chargeable separately for tax. Hence, this stand cannot be sustained. Consulting Engineer service - HELD THAT:- The Commissioner has recorded finding that the amount was paid in 2006-07, but there is no specific finding that the services were also received in 2006-07. In the absence of such finding and also in view of the submission made by the learned Counsel that service was received prior to 18.04.2006, it is found that Appellant has made out a case for deletion of demand, as Sec 66A was brought on statute w.e.f. 18.04.2006. Appeal allowed.
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