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TMI Blog2016 (1) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... peared that the appellant was paying Service Tax on the labour charges only and not paying ST on value of spare parts and lubricants used in the course of servicing of the motor vehicles. It appeared to Revenue that the practice was not in tune under Rule 5 & 6 of Service Tax (Determination of Value) Rules, 2006 read with Section 67 of the FA read with CBE&C Circular No. 96/8/2007-Service Tax. Further it appeared to revenue that the CBE&C Circular No. 87/05/2006-Service Tax clarified that in respect of spare parts and consumables, which have been consumed during the process and are not available for sale, for availing such exemption in terms of Notification No. 12/2003-ST, the goods must be sold and consequently they must be available for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spare parts and lubricants separately in the invoice on which VAT/Sales Tax is being paid and on service components and labour charges, the Service Tax is being paid. Thus, no Service Tax can be levied on the sale of goods. 3. The show-cause notice was adjudicated vide Order-in-Original dated 8.3.2013 and reduced amount of Rs. 4,74,146/- was confirmed considering that the appellant have already deposited an amount of Rs. 1,10,635/- for the period April, 11 to December, 11 which was confirmed by the Asstt. Commissioner along with interest and further penalty was imposed under Section 76 @ Rs. 200/- for every day during failure continue or at the rate of 2% of such tax, per month, whichever is higher upto the period 9.5.2008. Penalty of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Determination of Value) Rules, 2006 has been struck down as ultra vires, the provisions of Section 66 & 67 of the Finance Act by the Hon'ble Delhi High Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. Vs. Union of India & Others - 2013 (29) STR 9 (Del), it is categorically held that the value of goods used for providing the services which have been shown separately in the invoice, on which Sales Tax/VAT has been paid, cannot be included in assessable value and no Service Tax can be charged on the same. 6.1 The learned Counsel draws our attention to the finding of the Commissioner (Appeals), wherein it is observed as follows:- 'I observe that the appellants are paying Service Tax on labour charges, i.e. se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 12/2003-ST dated 20.6.2003 and Hon'ble Supreme Court decision in the case of Commissioner Vs,. Jain Brothers -2012 (28) STR 162 (SC) demand of Service Tax against the party for the cost of goods supplied during repair does not appear sustainable. Therefore, the Board is of the view that in the overall facts and circumstances of the case, no purpose would be served in pursuing SLP in the matter." 6.3 He further urges that in view of the fact that Board have accepted the legal position and have not filed further appeal in the matter, the appeal is fit to be allowed. 7. Heard learned DR, who supports the impugned order. On query from the Bench, as regards the matter has been settled in view of the Board's letter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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