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2019 (2) TMI 771 - AT - Service TaxBenefit of abatement - inputs used (on which they paid VAT) while rendering services from the value of taxable services rendered - Held that:- It is not in dispute that the services rendered by them were in the nature of ‘maintenance and repair services’ and these services also included transfer of materials. Invoices produced by the learned counsel for the appellant also shows that they had paid VAT on the goods used and paid service tax on the service charges only. The nature of contracts is composite contract, which, as per the judgment of the Hon’ble Apex Court in the case of L & T Ltd [2015 (8) TMI 749 - SUPREME COURT], became chargeable to service tax only from 01.06.2007. Thus, no service tax can be charged prior to the introduction of negative list of the services on maintenance and repair activity involving both the service and the sale/ deemed transfer of property of the goods/ components. Even otherwise, when their invoices clearly indicated the goods component separately and paid VAT on them deeming them to be sold to their client, service tax cannot be charged on such sums as they do not form part of the consideration for the service. Appeal allowed - decided in favor of appellant.
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