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TMI Blog2014 (1) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... go back to the adjudicating authority for fresh consideration. First of all, all the transactions involving only sale of spare parts should be excluded for the purpose of computation of service tax demand. Secondly, even in a case where the transaction involves both sale of spare parts and also rendering of service, the value of sale of spare parts should be excluded if sales tax/VAT liability has been discharged on such sales as is evident from the invoices/bills issued in this regard - Decided in favour of assessee by way of remand. - ST/85359/13 - - - Dated:- 25-2-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant : Shri G L Deshpande, Adv. For the Respondent : Shri Rakesh Goyal, Add., Comm (AR) PER : P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive years. The sale figure reflected in the balance sheet include sale of spare parts as such without any rendering of any service on which they had discharged sales tax/ VAT liability. Further, sale of spare parts might also occur in the course of repair of motor vehicles. In such cases also they have disclosed the value of spare parts in the bills raised and have discharged sales tax liability on such sales. Since sale and services are distinct and different, service tax cannot be levied on the sale of spare parts undertaken by the appellant. He relied on the circular No. B.11/1/2001-TRU dated 09/07/2001 wherein it has been clarified that cost of parts and accessories supplied during the course of repair and servicing of vehicles will n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the learned Additional Commissioner (AR) submits that the claim of the department for service tax in the case of composite service, on the aggregate value including the value of spare parts sold in the course of rendering of service would be sustainable in law. 5. We have carefully considered the rival submissions. As the issue lies in a narrow compass, after dispensing with the requirement of pre-deposit, we take up the appeal itself for consideration. 5.1 In para 3.2 of the impugned order it is stated that the appellant had furnished the following information and documents vide letter dated 07/09/2011: (i) Copy of Balance Sheet, Profit Loss Account for the year 2006-07 to 2009-10; and (ii) Copy of ST-3 returns for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he considered view that the mater has to go back to the adjudicating authority for fresh consideration. First of all, all the transactions involving only sale of spare parts should be excluded for the purpose of computation of service tax demand. Secondly, even in a case where the transaction involves both sale of spare parts and also rendering of service, the value of sale of spare parts should be excluded if sales tax/VAT liability has been discharged on such sales as is evident from the invoices/bills issued in this regard. The appellant is directed to produce before the adjudicating authority al the evidences they would like to rely upon in support of their above contention. 6. Thus, the appeal is allowed by way of remand. The stay ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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