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2016 (1) TMI 704 - CESTAT ALLAHABAD

2016 (1) TMI 704 - CESTAT ALLAHABAD - 2016 (43) S.T.R. 155 (Tri. - All.) - Management, Maintenance and Repair service - Liability of service tax - inclusion of Value of goods - cost of the goods supplied during repair - Held that:- Having considered the rival contentions and in view of the settled legal position in the case of Samtech Industries (2014 (4) TMI 995 - CESTAT NEW DELHI), upholding the order of this Tribunal by the Hon'ble High Court of Allahabad [2014 (8) TMI 1023 - ALLAHABAD HIGH C .....

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No. ST/52619/14 - Final Order No. A/70057/2015 and Stay Order No. SO/70013/2015 - Dated:- 13-10-2015 - ANIL CHOUDHARY, MEMBER (JUDICIAL) AND RAJU, MEMBER (TECHNICAL) For the Petitioner : Shri Vineet Kumar Singh, Adv. For the Respondent : Shri Chatru Singh, AC (AR) ORDER PER: ANIL CHOUDHARY: The appellant is an Authorized Service Station of Motor Vehicles. A show-cause notice dated 19.4.2012 was issued subsequent to audit during the December, 10/January, 11 wherein it appeared that the appellant .....

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parts and consumables, which have been consumed during the process and are not available for sale, for availing such exemption in terms of Notification No. 12/2003-ST, the goods must be sold and consequently they must be available for sale. It further appeared to Revenue that whether spare parts or consumables are consumed during the servicing of the vehicles, the Service Tax is to be discharged on entire amount of invoice/bills including the value of spare parts raised by the party against the .....

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that the appellant is not entitled to benefit of Notification No. 12/03 as they are not issuing separate invoices for sale of spares. It further appeared to the Revenue that the spare parts and consumables utilized in the course of servicing of vehicles without which the service is not complete and hence an integral part of service. Accordingly, Service Tax was proposed to be levied on the amount relatable to spare parts and lubricants for the extended period October, 2006 to December, 2011 amou .....

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udicated vide Order-in-Original dated 8.3.2013 and reduced amount of ₹ 4,74,146/- was confirmed considering that the appellant have already deposited an amount of ₹ 1,10,635/- for the period April, 11 to December, 11 which was confirmed by the Asstt. Commissioner along with interest and further penalty was imposed under Section 76 @ ₹ 200/- for every day during failure continue or at the rate of 2% of such tax, per month, whichever is higher upto the period 9.5.2008. Penalty of .....

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er Division Bench of this Tribunal in the case of Samtech Industries Vs. Commissioner of Central Excise - 2015 (38) STR 240 (Tri-Del), wherein the assessee was providing the service of repairing transformer and was using consumables like transformer oil and also component parts being coil etc., this Tribunal held, in view of the fact that it is not disputed that in respect of the supply of goods, used for providing of service of repair, Sales Tax/VAT is paid, which fact is evident from the invoi .....

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ice Tax (Determination of Value) Rules, 2006 has been struck down as ultra vires, the provisions of Section 66 & 67 of the Finance Act by the Hon'ble Delhi High Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. Vs. Union of India & Others - 2013 (29) STR 9 (Del), it is categorically held that the value of goods used for providing the services which have been shown separately in the invoice, on which Sales Tax/VAT has been paid, cannot be included in assess .....

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er, components, busing etc. are shown sold along with the service, are in the nature of integral part of the service." Accordingly, he urges that in view of the categorical finding that the appellants have charged the spare and lubricants separately in their invoice and have paid Sales Tax on the same, no Service Tax can be demanded and the learned Commissioner (Appeals) has erred in holding that Service Tax is applicable on the goods and lubricants observing that the service is not complet .....

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