TMI Blog2009 (9) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the opinion that the impugned order which confirms the demand on the amount of the materials/parts sold and used for rendering of repair and maintenance service is incorrect and the impugned order to that extent is liable to be set aside - ST/271/2008 - 1221/2009 - Dated:- 10-9-2009 - S/Shri M.V. Ravindran, Member (J) and P. Karthikeyan, Member (T) Shri P.J. Joseph, Advocate, for the Appellant. Ms. Joy Kumari Chander, Jt. CDR, for the Respondent. [Order per: M.V. Ravindran, Member (J)]. - This appeal is directed against the Order-in-Original No. 8/2008 dated 31-3-2008. 2. The relevant facts that arise for consideration are:- M/s. Hindustan Aeronautics Ltd., Engine Division, Vimanapura, Bangalore (hereinafter refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The balance amount of Rs.11,01,05,474/- (Rupees Eleven Crores One Lakh Five Thousand Four Hundred and Seventy Four only) shall be paid by the assessee. 2. Interest shall be paid by the assessee in the manner prescribed under the provisions of Section 75 of the Finance Act, 1994. 3. As per the legal provisions, the assessee is liable to imposition of penally under the provisions of Section 76, Section 77 and Section 78 of the Act However, keeping in view the fact that M/s. HAL is a public sector under taking, directly under the administrative control of Ministry of Defence, Govt. of India and no direct responsibility can be fixed on any officer, I consider that there is a reasonable cause for their failure to comply with the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions made at length by both sides and perused the records, It is undisputed that the issue involved in this case is regarding the Service Tax liability and the benefit of Notification No. 12/2003- S.T., dated 20-6-2003 as regards the reduction of value of goods and materials sold by service provider from the gross value of taxable services. It is also undisputed that the appellant is entering fixed price quotation for doing the work of Ministry of Defence. On the perusal of the records and the invoices produced by the ld. Jt. CDR, we find that the appellant is specifically showing in the invoices cost of the materials and cost of labour, separately. The only contention of the ld. Jt. CDR is that they are not paying sales tax. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the invoices which were produced before us clearly indicate materials charges and labour charges differently and we also find that in the very same invoices clearly indicate the discharge of Central Sales Tax as the amount of material cost. The invoices produced before us are not disputed by the Revenue. On perusal of the invoices, we find that the contention of the ld. Counsel for the appellant that they are charging for parts/materials separately and paying sales tax is correct. If that be so, we find that the decision of the Hon'ble Supreme court in the case of M/s. BSNL (supra) will directly cover the issue in favour of the appellant as regard the non-includability of the value of the parts/materials for arriving at the correct Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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