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TMI Blog2014 (9) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... on which Excise duty and VAT has been paid on the value of the said goods, ignoring the fact that as per the contract the respondents were under an obligation to replace the damaged parts and to maintain the transformers in a proper working condition." The assessee is engaged in the manufacture of electrical transformers. The assessee had entered into a contract with M/s. Dakshinanchal Vidyut Vitran Nigam Ltd., Agra and M/s. U.P. Power Corporation Ltd., Lucknow for repair and maintenance of transformers. The assessee was duly registered and was discharging its service tax liability under the service head 'Management, Maintenance and Repair'. The liability on account of service tax was discharged in respect of the labour charges rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided under Notification No.12/2003 dated 20.6.2003; but in the instant case, the condition are altogether different as in this contract a complete repair package cost per transformer (capacity wise) is being charged by the party. Further, it has been explained under para 1.2 of the said contract that for the purpose of calculations of price variation of HV/LV Leg Coil, Transformer Oil, excise duty, Sales Tax, the breakup of repair package is being given that means the replacement of parts like HV/LV Leg Coil, Transformer Oil was as part and parcel of condition of the said contract and the party was not having any option not to replace these items etc. which do not find a mention in the said contract." The Commissioner confirmed the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal held that service tax could not be demanded on that component representing the value of the goods and materials used for carrying out repairs. The mere fact that the cost of the various items was shown for the purpose of price variation was held not to make any difference to the legal position. On this finding of fact which was recorded by the Tribunal, no substantial question of law would arise. As a matter of fact, we may note that in the memo of appeal which has been filed by the Revenue, no effort has been made to displace the finding of fact which has been recorded by the Tribunal as being admitted. In this view of the matter, the conclusion of the Tribunal that the agreements and invoices reflected the cost of materials ..... X X X X Extracts X X X X X X X X Extracts X X X X
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