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TMI Blog2013 (8) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... value of goods involved – the reimbursement claims for value of goods show the items used and price of each item. The argument of Revenue that spare parts of motor vehicles used in repair was of the same nature as chemicals used in photography because the former are in the nature of spare parts where a sale prior to replacement is acceptable as a concept and the latter has the nature of consumables cannot be accepted – Rule 6 (1) (vi) of Service tax (Determination of Value) Rules 2006 does not specifically state that the rule was about cost of spare parts. Prima facie case is in favor of assessee - stay granted. - ST/40210/13 - Misc. Order No. 41476/2013 - Dated:- 21-5-2013 - Shri. P.K. Das and Shri. Mathew John, JJ. For the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al along with an application for waiver of pre-deposit of dues arising from the impugned order for admission of appeal. 2. The Counsel for applicant submits that no service tax is payable on value of spares reimbursed since it represents value of transaction of goods and not value of service provided. He relied on the decision of the Apex Court in the case of Mohd. Ekram Khan Sons Vs. Commissioner of Trade Tax [2004] 136 STC 515 (SC) wherein it has been held that there is a sale happening between authorized dealer and manufacturer when value of spares is reimbursed to the dealer by way of credit notes. He also relies on the decision of the Apex Court in the case of BSNL Vs. UOI 2006 (2) STR 161 (SC) wherein it was held that in a composi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only a reimbursement of value by YMIPL. Under notification 12/2003-ST exemption is available on the value of goods and materials sold by the service provider to the recipient of service. No document showing such sale or payment of sales tax on such sales transaction is produced. So, the applicant cannot claim exemption under notification 12/2003-ST. He further relies on Rule 6 (1) (iv) of Service Tax (Determination of Value) Rules 2006 which specifically provides for inclusion of reimbursement of expenses received from vehicle manufacturers while providing free services. RULE 6. Cases in which the commission, costs, etc., will be included or excluded. -(1) Subject to the provisions of section 67, the value of the taxable services shall in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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