TMI Blog2020 (1) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... INDIA PRIVATE LMITED VERSUS THE COMMISSIONER OF CENTRAL EXCISE, GOA AND M/S LAXMI TYRES VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE [ 2017 (1) TMI 1110 - SUPREME COURT] the issue has been decided, where the Hon ble Apex Court took the view that the spare parts/materials used for repairs and maintenance cannot be said to have been not sold to the customers. In any annual maintenance contract, the spare parts etc., which have been used in the course of maintenance service are definitely considered to be sold and when sales tax has been paid on the value of such goods, simultaneously, one cannot charge them to service tax. In the present case, the demand raised herein is on the value of materials, on which VAT has already been discharged. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Contract Service and 70% of the composite value has to be considered for payment of service tax. Show-cause notice dated 08.04.2015 was issued demanding differential service tax of ₹ 56,88,580/- for the period from Dec. 09 to Mar. 14. After due process of law, the original authority confirmed the demand along with interest and imposed equal penalty. Aggrieved by such order, the appellants filed appeal before Commissioner (Appeals), who upheld the order passed by the original authority. Hence this appeal. 2. The learned counsel Shri N. Viswanathan appeared on behalf of the appellant. He submitted that the appellant has discharged VAT on the value of materials and during the relevant period the rate of tax under VAT was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Co. (P) Ltd., (supra) the said issue has been decided, where the Hon ble Apex Court took the view that the spare parts/materials used for repairs and maintenance cannot be said to have been not sold to the customers. In any annual maintenance contract, the spare parts etc., which have been used in the course of maintenance service are definitely considered to be sold and when sales tax has been paid on the value of such goods, simultaneously, one cannot charge them to service tax. In the present case, the demand raised herein is on the value of materials, on which VAT has already been discharged. Following the settled position in M/s. Safety Retreading Co. (P) Ltd., (supra) the demand cannot sustain. The impugned order is set aside. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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