2019 (5) TMI 718 - AT - Service Tax

Valuation - Service of Motor Vehicle - Business Auxiliary Service - whether the value of the consumable and parts on which the VAT stands paid by the appellant is required to be included in the value of services so provided by the appellant or not? HELD THAT - The issue decided in the case of M/S. SAMTECH INDUSTRIES AND OTHERS VERSUS CCE. KANPUR AND OTHERS 2014 (4) TMI 995 - CESTAT NEW DELHI , where it was held that value of goods used for providing the service, which had been shown by the appellant separately in their invoices and on which Sales Tax/VAT had been paid, cannot be included for assessable value and no Service Tax can be charged on the same. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the value of consumable and parts on which VAT is paid by the appellant should be included in the value of services provided.

Analysis:
The appellant, registered with the Service Tax Department for "Service of Motor Vehicle" and "Business Auxiliary Service," raised a dispute regarding the inclusion of the value of consumable and parts, on which VAT was paid, in the total value of services provided. Both parties acknowledged that the issue had been settled by previous Tribunal decisions upheld by the Hon'ble Allahabad High Court. Reference was made to the case of Samtech Industries vs. Commissioner of Customs & Excise, Kanpur, confirmed by the High Court, along with other decisions like M/s Doon Valley Motors vs. Commissioner of Central Excise, Service Tax, Meerut-II and M/s J P Transformers vs. Commissioner of Central Excise & Service Tax, Kanpur. Given the precedents, the Tribunal set aside the impugned order and allowed the appeal with consequential relief.