2018 (9) TMI 1275 - AT - Service Tax

Valuation - includibility - inclusion of value of the goods used in providing the said services in assessable value - Held that - The issue is no more res-integra and stands settled by the Hon ble Allahabad High Court in the case of Commissioner of Customs And Central Excice V/s J.P. Transformers 2014 (9) TMI 307 - ALLAHABAD HIGH COURT , where it was held that the value of the goods used in providing repair of Transformers are not to form part of the value of the services so provided by assessee - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Whether the value of goods used in providing repair services should be included in the taxable service value for Service Tax assessment.

Analysis:
The appellant, engaged in providing taxable services falling under 'Maintenance and Repair,' faced a demand raised by the Revenue. The Revenue contended that the value of the service should include the value of goods used in providing the services. This demand culminated in an order passed by the Commissioner of Central Excise, Kanpur, confirming Service Tax of approximately ?81 lakhs, along with interest and a penalty of a similar amount.

Both parties agreed that the issue had been settled by the Hon'ble Allahabad High Court in a previous case. The High Court held that the value of goods used in providing repair services should not be considered part of the value of the services provided by the assessee. Following this precedent, the Appellate Tribunal set aside the impugned order, allowing the appeal and disposing of the stay petition.

The judgment highlights the importance of legal precedents in resolving tax disputes and ensuring consistency in the interpretation and application of tax laws. It emphasizes the significance of judicial decisions in clarifying contentious issues and providing guidance for future cases. The decision also underscores the role of appellate tribunals in upholding legal principles and protecting the rights of taxpayers in tax matters.