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2020 (4) TMI 380 - CESTAT NEW DELHIValuation - inclusion of value of spare parts sold while servicing a motor vehicle - Section 67 of the Finance Act 1994 - HELD THAT:- A bare perusal of the Circular dated 23 August 2007 indicates that Service Tax would not be leviable on a transaction treated as sale of goods and subjected to levy of Sales Tax/ VAT and whether a given transaction between the service station and the customers is a sale or not is to be determined taking into account the real nature and material facts of the transaction. The Circular also clarifies that payment of VAT or Sales Tax on a transaction indicates that the said transaction is treated as sale of goods. The decision in Semtech Industries [2014 (4) TMI 995 - CESTAT NEW DELHI ] clearly holds that when invoices are issued showing the value of the goods used and the service charges separately, service tax would be chargeable only on the service/ labour charges and the value of goods used for repair would not be includable in the assessable value of the service. It is not in dispute that while raising the invoices, the Appellant had separately shown the cost of the goods and the cost of service. The invoices also shows that VAT had been charged for the sale of spare parts. Thus, if a sale had taken place and it had been subjected to VAT, no Service Tax could have been levied - thus, the value of spare parts cannot be included in the assessable value for payment of Service Tax. Appeal allowed - decided in favor of appellant.
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