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TMI Blog2014 (4) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... s they very often replace certain components like HV/LV coils etc. and also the used transformer oil for filling. They are liable to pay service tax in respect of the service of repair of old transformer provided by them to their clients and for which they have service tax registration. In the invoices issued by them to their customers they show the service charges and the value of the transformers oil and other consumables and of the components parts replaced, separately. While Service Tax/VAT is paid on the amount charged for the transfer oil/ consumables and the components used for repair, service tax was being paid by them only on the service/ Labour charges. The Department was of the view that the service tax is chargeable on the gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 18.10.11 passed by CCE Meerut Rs.3,37,45,549 along with interest u/s 75 of Finance Act, 1994 Rs.3,37,45,549 u/s78,Rs.200/- per day, u/s/ 76 & Rs. 5000/- u/s 77 ibid 6. M/s. ABC Transformers 13-14/Comm./Noida/2012-13, dt. 24.07.12, passed by CCE Noida Rs.2,88,01,574 along with interest u/s 75 of Finance Act, 1994 Rs.2,88,01,574 u/s 76,77 & 78 of the Finance Act, 1994 Against the above orders these appeals have been filed. 2. Heard both the sides. 3. Sh. Parveen Sharma, Advocate representing M/s. ABC Transformers, M/s. Paramax Electronics Pvt. Ltd. and Sh. Vineet Singh, Advocate, representing M/s. Samtech Industries,M/s. S. J. Transformers M/s. Mahendra Engineering Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r providing service are satisfied, this exemption would be available and the value of the goods used would not be part of the assessable value of the service and as such no service tax can be charged on the value of the goods used and that, therefore, the impugned orders are not sustainable. 4. Sh. Davinder Singh, learned Jt. CDR, defended the impugned orders by reiterating the findings of Commissioners and citing the judgment of Larger Bench of Tribunal in case of Aggarwal Colour Advance Photo System Vs. CCE, Bhopal reported in 2011(23) - STR-608 pleaded that the contracts of the appellant with their customers were for repair of transformers, that when repair & maintenance service is taxable and in term of section 67 of the Finance Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of the goods used for providing the service of repair, Sales Tax/VAT is paid. This fact is clear from the invoices placed on record. In view of this, the appellants contracts with their customers have to be treated as split contracts for supply of goods and rendering the service. When the value of the goods used has been shown separately in the invoices and Sales Tax/VAT has been paid on the same, the supply of the goods would have to be treated as sale and the transactions which are sale, cannot be the part of service transaction. In view of this, we hold that Service Tax would be chargeable only on the Service/Labour charges i.e. on service component and the value of goods used for repair would not be includible in the assessable valu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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