9911796707
TMI Blog2014 (2) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of dispute in this case is from 2006-2007 to 2009-2010 (upto September). In course of scrutiny of the service tax records maintained by the appellant, it was found by the officers that while the invoices raised by the appellant to their customers separately mentioned the service charges and the charges for the components parts replaced and consumables used, they were paying the service tax only on service charge component of the bills and were paying VAT on the value of spare parts and consumables (lubricants etc.) and, as such, the value of the spare parts and consumables used in servicing were not included in the assessable value of the service for payment of the service tax. The Department was of the view that in terms of the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding of the service, for the purpose of service tax, the value of the service would not include the value of spare parts and consumables, that the Board vide its Circular No. 96/7/2007-ST dated 23/08/07 has also clarified that when spare parts are sold by a service station during servicing of a vehicle, service tax is not liable to be paid on the value of the spare parts sold, if VAT/ Sales Tax has been paid on the spare parts, as the payment of VAT/Sales Tax on the value of the spare parts indicates that the said transaction has been treated as sale of goods, that same view has been taken by the Tribunal in the case of Samtech Industries vs. CCE, Kanpur reported in 2013 (31) S.T.R. 16 (Tri. -Del.), that in any case since there is a sale o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount charged for spare parts and consumables, the service tax is paid only on the labour/service component. We are of prima facie view that the appellants transactions for their customers consist of sale as well as service, which are clearly identifiable. Moreover, when the appellant pay Sales Tax/VAT on the consumables and spare parts used by them for servicing, that transaction would have to be considered as sale and, hence, the same cannot be made part of the value of the service. We are also prima facie view that when there is sale of goods involved, the benefit of exemption Notification No. 12/2003-ST cannot be denied when there is no allegation that the conditions of this exemption notification are not satisfied. We find that the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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