9911796707
TMI Blog2017 (6) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax on the gross value of the subject spare parts used in servicing of motor vehicles by the authorized service station. The Tribunal in the case of M/S. SAMTECH INDUSTRIES AND OTHERS VERSUS CCE. KANPUR AND OTHERS [ 2014 (4) TMI 995 - CESTAT NEW DELHI] has held that on the cost of items supplied/ sold for providing the service, service tax cannot be demanded. There is no merit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon issue involved in these appeals. Therefore they are being decided by this common order. 2. Both sides have been heard. 3. The appellant pleads that there is Board s Circular No. 96/7/2007-ST dated 23.08.2007 stating that service tax is not leviable on the transaction of sale, treated as sale of goods and subjected to levy of sales tax/VAT. When the subject transactions involve sale of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued by them show the value of the goods used and the service charges separately. The amounts charged for various parts like HV/LV oils and transformer oil are as per the rates specified in the contracts. It is not disputed that in respect of the supply 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the course of providing a taxable service, all such expenditures or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value of the services for the purpose of charging Service Tax on the said service, unless such costs or expenditure have been incurred by the service provider as Pure Agents of the service recipient. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal No. ST/286/2012 also stands disposed of as the appeals itself has been allowed. 5. Applying the ratio of the above decision, we find that there is no merit in the impugned orders confirming the demand of service tax. In the result, the impugned orders are set aside and both the appeals allowed with consequential relief, if any, to the appellant. (Dictated and pronounced in the open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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