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2023 (9) TMI 1255 - CESTAT KOLKATAValuation of services - maintenance and repair charges - maintenance and repair services of Heavy Earth Moving Machinery (HEMM), which also entail supply of spare parts in respect of HEMM - extended period of limitation. It is alleged that the appellant has arbitrarily split the gross amount of the agreement towards spare parts and supply of service and that the appellant had inflated the value of spare parts charges and included the value of onsite management services in the value of spare parts and thus evaded payment of service tax. HELD THAT:- On similar facts the demand of service was was confirmed by the revenue on another assessee namely M/S. GAINWELL COMMOSALES PRIVATE LIMITED (FORMERLY M/S. TIL LIMITED) VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, RANCHI. [2023 (6) TMI 1308 - CESTAT KOLKATA] and in that case, this Tribunal has examined the issue and observed that But, in the case in hand, value of material supplied has already been ascertained and VAT has been paid thereon, in that circumstances, we hold that for the period post 01.07.2002, the taxable value is to be determined in terms of Rule 2A(i)(c) of the Valuation Rules, 2006, therefore in view of the above, this issue is also answered in favour of the Appellant. In this case, it is an admitted fact that appellant has paid VAT on the spare parts supplied by the appellant. In that circumstances, the value of goods supplied is ascertainable as appellant has paid VAT thereon. Therefore, the said amount on which VAT has been discharged by the appellant is to be excluded from the value of the total contract to ascertain the value of taxable service provided by the appellant and the appellant has paid service by excluding the value of spare parts supplied by them. The differential demand of service tax is not sustainable in the light of the decision in the case of Gainwell Commosales Private Limited - Appeal allowed.
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