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2015 (2) TMI 972 - AT - Service TaxValuation - inclusion of value of material - authorised service station for Maruti cars - Board's Circular no. 96/7/2007-ST dated 23/08/2007 - Held that:- Appellant are charging handling charges whenever automobile parts are sold either independently or part of the service and repair of automobiles. In both the situations, invoices are issued for the sale of the goods as well as for collection of service charges for the services rendered. Handling charges were incurred in connection with the procurement of the goods and are included in the value of the goods sold and sales tax/VAT liability is discharged on the value inclusive of the handling charges. Therefore, 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. - Section 67 of the Finance Act, 1994 mandate levy of Service Tax on a value or consideration received for rendering the services. Therefore, any consideration received for supply of goods is not covered within the scope of section 67. The decisions of the Tribunal in the case of Ketan Motors Ltd. [2014 (3) TMI 226 - CESTAT MUMBAI] and Dynamic Motors cited [2011 (11) TMI 308 - CESTAT, NEW DELHI] also support this view. - Accordingly, the impugned order is clearly unsustainable in law and, therefore, the same is set aside - Decided in favour of assessee.
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