9911796707
TMI Blog2018 (7) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... Motor Vehicles'. A show cause notice dated 18/04/2012 was issued, subsequent to audit, wherein it appeared that the appellant was paying Service Tax on the labour charges only and not paying Service Tax on value of spare parts and lubricants used in the course of servicing of the motor vehicles. It appeared to Revenue that the practice was not in tune under Rules 5 & 6 of Service Tax (Determination of Value) Rules, 2006 read with Section 67 of the Finance Act read with C.B.E. & C. Circular No.96/7/2007-Service Tax. Further it appeared to Revenue that the C.B.E. & C. Circular No.87/05/2006-Service Tax clarified that in respect of spare parts and consumables, which have been consumed during the process and are not available for sale, for ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance Act, 1994. 3. The appellant contested the show cause notice by filing a written submission pointing out that they are showing the spare parts and lubricants separately in the invoice on which VAT/Sales Tax is being paid and on service components and labour charges, the Service Tax is being paid. Thus, no Service Tax can be levied on the sale of goods. 4. The show cause notice was adjudicated vide Order-in-Original dated 14/05/2013, proposed demand was confirmed by the Commissioner along with interest and further penalty was imposed under Section 76 of Finance Act, 1994 @ Rs. 200/- for every day during failure or @ 2% of such tax, per month, whichever is higher, up to the period 9-5-2008 and Rs. 72,03,365/- under Section 78 of the Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Issue already settled in decision of Tribunal in 2015 (38) S.T.R. 240 (Tribunal) as upheld by High Court holding that cost of items supplied/sold in course of providing services is not to be included in assessable value, when shown separately - This legal position also accepted by C.B.E & C vide letter dated 27/09/2013 - Demand not sustainable - Section 67 of Finance Act, 1994. 6.1 The learned Counsel draws our attention to the finding of the Commissioner wherein it is observed as follows : - "I observe that the appellant is paying Service Tax on labour charges and paying VAT on the value of spare parts & lubricants. It is also observed that on the aforesaid invoices, the details such as Job card No., Reg. No. of vehicle, Chassis No. of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s situation in view of the Notification No. 12/2003-S.T., dated 20-6-2003 and Hon'ble Supreme Court decision in the case of Commissioner v. Jain Brothers - 2012 (28) S.T.R. 162 (S.C.) demand of Service Tax against the party for the cost of goods supplied during repair does not appear sustainable. Therefore, the Board is of the view that in the overall facts and circumstances of the case, no purpose would be served in pursuing SLP in the matter." 6.3 He further urges that in view of the fact that Board have accepted the legal position and have not filed further appeal in the matter, the appeal is fit to be allowed. 7. Heard learned DR, who supports the impugned order. On query from the Bench, as regards the matter has been settled in view ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
