9911796707
TMI Blog2011 (9) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... CCE, Trivandrum [2006 -TMI - 649 - CESTAT, BANGALORE] Held that appellant contention is required to be accepted and confirmation of service tax or imposition of penalty upon them is not sustainable - Appeal allowed with consequential relief. - ST/439 of 2008 - - - Dated:- 13-9-2011 - Ms. Archana Wadhwa, Mr. Rakesh Kumar, JJ. Appearance: Shri S.P. Ojha, Consultant for the Appellants Shri Nagesh Pathak, DR for the Respondents Per Archana Wadhwa (for the Bench): After hearing both sides, we find that the appellant is an authorised dealer of M/s. Maruti Udyog Ltd. and is an authorised service station. During the course of their business, they also sell and purchase the various accessories of motor vehicles sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax liability on entire consideration, no Service Tax can be confirmed. 4. The contention of the DR appearing for the Revenue is that sales tax is being State subject and Service tax being Centre subject, both are mutually exclusive. Merely because sales tax has been paid on gross value by itself does not mean that no service has been to be paid by the appellant. Further, he submits that amount of tax has been paid confirmed by taking 2% of the gross value though he fairly agrees that no such separate amount was reflected in the invoices. 5. Considering the submissions made by both sides, we find that the issue is covered by the Tribunal's decision in the case of Idea Mobile Communication Ltd. which in turn is based upon ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable on the item on which sales tax has been collected. In terms of the Apex Court judgment and the paragraph quoted (supra) the appellants contention is required to be accepted. In terms of the Apex Court judgment, the levy of service tax is not sustainable. The appeal is allowed with consequential relief, if any." 7. Applying the ratio of the above decision of the Idea Mobile, we find that the issue stands decided and there being no dispute that the appellant company having already paid sales tax on the entire gross value, we are of the view that confirmation of service tax or imposition of penalty upon them is not sustainable. Accordingly, we set aside the impugned order and allow the appeal with consequential relief to the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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