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TMI Blog2014 (9) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... the agreement and is separately mentioned in the invoices of the assessee. The assessee has paid excise duty or, as the case may be, value added tax on goods used in the repairing process. It was in this factual background, on which there is no dispute, that the Tribunal held that service tax could not be demanded on that component representing the value of the goods and materials used for carrying out repairs. The mere fact that the cost of the various items was shown for the purpose of price variation was held not to make any difference to the legal position. no substantial question of law would arise - Decided against Revenue. It has been stated on behalf of the assessee that the Revenue serves only a narrative prepared by the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd maintenance of transformers. The assessee was duly registered and was discharging its service tax liability under the service head 'Management, Maintenance and Repair'. The liability on account of service tax was discharged in respect of the labour charges recovered by the assessee. The case of the Revenue was that the contract with the assessee is a composite contract under which the assessee was to provide the service of repairing transformers. Hence, according to the Revenue, the assessee was required to pay the service tax on the total contracted value, including consumables and items used in the repair of the transformers. The Commissioner in the course of his order dated 24 May 2011 agreed with the submission of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the replacement of parts like HV/LV Leg Coil, Transformer Oil was as part and parcel of condition of the said contract and the party was not having any option not to replace these items etc. which do not find a mention in the said contract. The Commissioner confirmed the demand of duty on service tax and imposed a penalty. In appeal, the Tribunal has held that that there was no dispute about the following factual aspects: (i) the contract showed the cost of each and every item separately; (ii) as a matter of fact, the Commissioner had accepted that the invoices reflected separately the value of various items such as HV/LV Leg Coils and Transformer Oil on which the assessee paid tax including value added tax. In this backgro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emo of appeal which has been filed by the Revenue, no effort has been made to displace the finding of fact which has been recorded by the Tribunal as being admitted. In this view of the matter, the conclusion of the Tribunal that the agreements and invoices reflected the cost of materials and labour separately, and that the assessee had duly paid VAT/CST and excise duty on the goods sold, is not in dispute. It was in this background that it was held that no service tax would be leviable on the value of the materials. Before concluding, we may note that the Tribunal has relied upon its own decision in the case of Balaji Tirupati Enterprises vs. CCE, Meerut1. The Tribunal has noted that this decision was upheld by the High Court in 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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