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TMI Blog2013 (9) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant that the cost of spare parts sold cannot be included in the value of the services rendered - The appellant was also directed to submit all documents and evidences in support of their claim that they have discharged Sales Tax/VAT on the spare parts sold during the course of rendering the service. The cost of spare parts sold during the rendering of service cannot form part of the transaction value - The Board's Circular dated 23.08.2007 also confirmed the above position - Appellant contended that the transactions which involved only sale of spare parts without rendering of the service - In those cases, the levy of Service Tax would not arise at all - In the bills raised, the appellant had clearly indicated the quantity and value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax liability on the whole of the amount charged and not on the services portion alone. Accordingly, a show cause notice dated 13.10.2011 was issued to the appellant demanding Service Tax of Rs.3,55,36,207/- for the period 2006-07 to 2011-11. Interest on the said amount was also demanded and there was also a proposal for imposition of penalty under the provisions of Finance Act, 1994. The cost of spares parts was taken from the balance sheets of the appellants. The notice was adjudicated. The appellant contested that they are not liable to pay Service Tax on the goods sold to the customers and, therefore, inclusion of the same in the value of the taxable service is not sustainable in law. The contention of the appellant was not accepted an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. (iii) He also relies on the Board's Master Circular Ref. no. 036.03 dated 23.08.2007, wherein the Board had clarified as follows:- Issue Clarification Whether spare parts sold by a service station during the servicing of vehicles is liable to payment of service tax? Service Tax is not leviable on a transaction treated as sale of goods and subjected to levy of Sales Tax/VAT. In the light of the above, he pleads that the stay be granted and the matter be remanded back to the adjudicating authority for fresh consideration. 3. The learned Addl. Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. 4. After hearing both the sides, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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