TMI Blog2014 (11) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue before the Tribunal was whether transformer oil, HV/LV coil and spare parts which are goods incorporated into transformers belonging to the Nigam, should be included for the purpose of quantifying the gross consideration received, as constituting the taxable value. The Tribunal has relied upon its own decisions and come to the conclusion that the law is settled; the principle of law being that where an agreement quantifies the value of materials separately from the value of services rendered, the value of the materials or goods would have to be excluded since that component is not liable to service tax. - Following decision of Commissioner of Customs and Central Excise Vs. J.P. Transformers [2014 (9) TMI 307 - ALLAHABAD HIGH COUR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to BSNL and payment by BSNL were different, whether the Hon'ble CESTAT has erred in dropping the demand in the instant case when the ratio of the Apex Court Judgment equally applies in as much as contract is aimed at to repair/overhaul transformer and package amount is agreed to be paid including cost of parts replaced for the repair of transformers. The payment of VAT on certain parts of transformers may not deprive the Service Tax department to levy and collect its dues as per the interpretation of gross value concept stipulated in Section 67 of the Finance Act, 1994 and composite nature of Service Contract entered by the respondent in this case. The assessee provided Management, Maintenance and Repair services for the repair of o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice variation, the contract would not be regarded as one for providing services inclusive of the value of the goods which were used. The Tribunal relied upon Notification 12/2003-ST, dated 20 June 2003 under which the value of goods and materials sold by the service provider to the recipient of services stands exempted from the service tax leviable thereon subject to the condition that there should be documentary proof specifically indicating the value of the goods and materials. In the present case, it has been found as a matter of fact that the value of the goods and materials utilized for repair of the transformers is separately disclosed in the agreement and is separately mentioned in the invoices of the assessee. The assessee has pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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