2023 (10) TMI 114 - AT - Service Tax

Levy of service tax - Management and Repair Service - service of repaid carried out to photocopier machines, projectors, laser printers etc. - invoices did not show the value of the parts separately so as to meet the requirements of N/N. 12/2003-ST - HELD THAT - The same issue for the period up to September 2008 is covered by BRIGHT MARKETING COMPANY VERSUS COMMISSIONER OF CENTRAL EXCISE, COIMBATORE 2018 (9) TMI 1592 - CESTAT CHENNAI by a Coordinate bench of this Tribunal, wherein it was held that when the assessee has paid tax under the State statute on the value of component of material used, service tax would be exigible only on the remaining value of services provided and allowed the appeal. The impugned order covers the period October 2008 to March 2009 on identical facts. There are no reason to deviate from the said order - impugned order set aside - appeal allowed.

Summary

Issues involved:
The issue involves the liability to pay service tax under the category of 'Maintenance and Repair Service' for repair work carried out on photocopier machines, projectors, and laser printers. The main contention is whether the appellant is liable to pay service tax on the value of parts replaced during the repair work.

Summary of the Judgment:

Issue 1: Liability to pay service tax on repair work
The appellant, a service provider under the category of 'Maintenance and Repair Service,' was providing repair and maintenance services on various equipment. The Central Excise officers observed discrepancies in the appellant's accounting practices, where service tax was paid only on a portion of the bill value, claiming the rest as exempted under Notification No. 12/2003-ST. The appellant was accused of not indicating the value of materials supplied separately in the invoice, as required by the Notification. The appellant had also not disclosed relevant details in the ST-3 returns, leading to a shortfall in service tax payment. The authorities issued a demand for service tax, interest, and penalty. The appellant contended that they had discharged appropriate VAT on 70% of the value of replaced parts, and a similar issue had been allowed in previous proceedings by the Tribunal. The Tribunal, referring to previous orders, held that when tax had been paid on the material component under the State statute, service tax would be applicable only on the remaining value of services provided. The impugned order was set aside, providing relief to the appellant for the period in question.

End of Judgment Summary