TMI Blog2014 (4) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the invoices and Sales Tax/VAT has been paid on the same, the supply of the goods would have to be treated as sale and the transactions which are sale, cannot be the part of service transaction. In view of this, we hold that Service Tax would be chargeable only on the Service/Labour charges i.e. on service component and the value of goods used for repair would not be includible in the assessable value of the service - Following decision of Intercontinental Consultants & Technocrafts Pvt. Vs. Union of India & Others Ltd. reported in [2012 (12) TMI 150 - DELHI HIGH COURT] - value of goods used for providing the service, which had been shown by the appellant separately in their invoices and on which Sales Tax/VAT had been paid, cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for repair of the transformers including value of consumables like transformer oil and the component parts like HV/LV coil etc. used. On this basis after issue of Show Cause Notices, service tax demands of various amounts were confirmed against them by six separate orders passed by the Commissioners, the details of which are given below:- S. No. Party s Name Order-in-Original No. and Date Service Tax Demand conformed Penalty, If any imposed 1. M/s.Samtech Ind. 17/ST/Comm./2011,dt.16.8.11passed by CCE, Kanpur Rs.1,84,92,181 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13-14/Comm./Noida/2012-13, dt. 24.07.12, passed by CCE Noida Rs.2,88,01,574 along with interest u/s 75 of Finance Act, 1994 Rs.2,88,01,574 u/s 76,77 78 of the Finance Act, 1994 Against the above orders these appeals have been filed. 2. Heard both the sides. 3. Sh. Parveen Sharma, Advocate representing M/s. ABC Transformers, M/s. Paramax Electronics Pvt. Ltd. and Sh. Vineet Singh, Advocate, representing M/s. Samtech Industries,M/s. S. J. Transformers M/s. Mahendra Engineering Ltd. and M/s. Surya Transformers Appeal No. ST/411/2011, pleaded that value of the goods used for repair of the transformers is not includible in the assessable value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as such no service tax can be charged on the value of the goods used and that, therefore, the impugned orders are not sustainable. 4. Sh. Davinder Singh, learned Jt. CDR, defended the impugned orders by reiterating the findings of Commissioners and citing the judgment of Larger Bench of Tribunal in case of Aggarwal Colour Advance Photo System Vs. CCE, Bhopal reported in 2011(23) - STR-608 pleaded that the contracts of the appellant with their customers were for repair of transformers, that when repair maintenance service is taxable and in term of section 67 of the Finance Act, 1994, service tax is chargeable on the gross amount charged, value of the goods used for providing service would have to be included in the assessable value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants contracts with their customers have to be treated as split contracts for supply of goods and rendering the service. When the value of the goods used has been shown separately in the invoices and Sales Tax/VAT has been paid on the same, the supply of the goods would have to be treated as sale and the transactions which are sale, cannot be the part of service transaction. In view of this, we hold that Service Tax would be chargeable only on the Service/Labour charges i.e. on service component and the value of goods used for repair would not be includible in the assessable value of the service. The Ld. DR has cited Rule 5(1) of the Service Tax (determine of Valuation) Rules, 2006 accordingly to which that where any expenditure or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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