9911796707
TMI Blog2024 (5) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... commission was being paid or the transaction were purely on commission basis without title to the goods undergoing a change like in case of intermediary services. These were purchased by the appellant in their name from the spare parts market and same were in turn sold of to their customers purely as obligatory facilitation measure without any charge for such facilitation. There was no existence of agency relationship between them and their buyer. A simple requisition by the customer of the spare parts as may be required by them and delivering the same by them was as per contractual requirement or warranty obligation by the appellant. It would not tend to bring the transaction within the ambit of Business Auxiliary Service . As sale and pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Noti.12/03-ST qua sale of spares to the customers, where the contract stipulated providing life-time supply of spares. That the said Notification No.12/03-ST is pari materia to Section 66D(e) of the Finance Act, 1994 read with Section 66B(44) of the said Act, which clearly states that any trading of goods and/or mere sale of goods is outside purview of service and even covered under Negative list, and no Service Tax can be demanded thereon. Whether the said spares had to be traded due to contractual compulsion or otherwise, so long as it is mere trading of goods, and on which admittedly VAT stands paid, no Service Tax thereon can be demanded at all. That the Adjudicating Authority in the remand proceedings dropped the demand vide OIO No. SU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand which pertains to such category of contracts wherein equipment was originally sold without any stipulation for providing lifetime spares supplies by the Appellant on trading basis to the customers, the same must be set-aside without any reservation. As regards the other category of contracts wherein at the time of selling original equipment, there is a stipulation that the Appellant has to provide lifetime supply of spares on (trading basis), it was stated by the appellant that the Tribunal did not record any conclusive finding in previous board of litigation and, simply stated that there can be a doubt regarding element of service involved in such transaction. The Tribunal did not go into all aspects and did not finally examine whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .S.T.L. 470 (Tri. Chennai) Seva Automotive Pvt. Ltd. 2015(37) S.T.R. 747(Tri- Mumbai) M/s. MG Motors 2020(4) TMI 380-CESTAT New Delhi Modern Machinery 2019(5) TMI 718- CESTAT New Delhi 2.1 During the course of hearing, Learned Advocate took the Bench through various works contracts, as well as underlying conditions contained therein to emphasise that the goods were supplied on principal to principal basis. They were purchasing the same from the market and supplying by adding some margin to their customers and the goods were never supplied on commission basis so as to come under preview of the provision relating to Business Auxiliary Service as were existing during the impugned period of January, 2011 to June, 2012. And even thereafter, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice. Specially when spares are getting charged for. 3. Learned AR on the other hand, places reliance on the findings of the impugned order and reiterates the same to emphasise that elements of supply is involved. 4. We have considered the above submissions. We find that in the instant case supplies were made on Principal to Principal basis. There is nothing on record to show that any commission was being paid or the transaction were purely on commission basis without title to the goods undergoing a change like in case of intermediary services. These were purchased by the appellant in their name from the spare parts market and same were in turn sold of to their customers purely as obligatory facilitation measure without any charge for such ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
