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TMI Blog2024 (8) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% abatement in terms of Rule 2A of Valuation Rules for providing Works Contract Service (annual maintenance services along with spare parts). The eligibility has been absolutely ignored by the adjudicating authority below. It is observed that prior filing reply dated 23.03.2021, the appellant had also filed reply to the letter summoning response from the appellant. Vide his letter dated 27.10.2019 it was duly brought to the notice to the department that the appellant has two service tax registration numbers. One is for Business Auxiliary Service and various other services and another is for Survey and Exploration of Mineral Services. The amount in question is towards rendering Repair and Maintenance Services under the registration meant fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that for the Financial year 2016-17, the difference in the assessable income as perST-3 returns and comparison thereof with the value from balance sheet is of Rs.13,37,596/-. Accordingly, service tax of Rs.2,00,639/- on the said amount for the year 2016-17 was alleged to be short paid. The same was proposed to be recovered vide Show Cause Notice No. 1571/2019-20 dated 09.01.2020. The proposal was initially confirmed vide Order-in-Original No. 06/ST dated 30.03.2021. The appeal against the said order has been dismissed vide the Order-in-Appeal/order under challenge. 2. We have heard Ms. Tuhina Sinha, learned Advocate for the appellant and Shri Rohit Issar, Authorized Representative for the department. 3. Learned counsel for the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of the invoices. The findings of the Commissioner (Appeals) in Para 10 and therefore factually wrong. There is no basis of any noticed difference. The order of confirming demand of service tax on the said differential duty is therefore liable to be set aside. Appeal is accordingly prayed to be allowed. 4. While rebutting those submissions, learned Departmental Representative has mentioned that the plea as has been taken by the appellants in their reply to the show cause notice was never got supported by way of documents. Opportunity was repeatedly given by the original adjudicating authority but no document was provided. In fact none appeared at the time of personal hearing except once when it was submitted on behalf of the appellant tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well. Perusal thereof in light of the agreement on record it is clear that M/s. MECL had obtained the Repair Maintenance Service from the appellant with the clear understanding that the supply of spares required in the maintenance (excluding diesel) shall be provided by the appellants. The comprehensive agreement for annual maintenance, clause 6 of terms and conditions therein reads as follows: 6. CAMC shall include both skilled and trained manpower for maintenance and supply of spares for Drilling rig, Tyres, batter and lubricants free of cost (excluding Diesel) for preventive, predictive as well as breakdown maintenance. 5.2 In invoices the value of the includes the goods as were required for the said maintenance along with proportionate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also provided copy of supply orders namely 0453/MECL/MM/FIL/PUR/PDC/82-A dated 21.09.2015 and 0254/MECL/MM/PUR/PDC/82 dated 10.12.2014 sample invoices issued to M/s. Mineral Exploration Corp. Ltd. 10. While going through these orders, I find in these orders that M/s. Mineral Exploration Corporation Limited allotted tenders for supplying various Goods i.e. Crawler Mounted Hydrostatic Core Drill, Truck Mounted Hydrostatic Core Drill etc. and not for any Services. Further I also find that the work contract order numbers mentioned in their invoices were not provided by the Appellant. I also find on perusal of the comprehensive annual maintenance charges charged by the Appellant that no VAT had been paid, since no VAT element is included while c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks contract shall be equivalent to the gross amount charged for the works contract less the value of property in goods transferred in the execution of the said works contract. Explanation- For the purposes of this clause,- B. in case of works contract entered into for maintenance or repair or reconditioning or restoration or servicing of any goods, service tax shall be payable on seventy percent of the total amount charged for the works contract: 5.4 The bare perusal sufficiently clarifies that for the activity of maintenance/repair by way of rendering it as a Works Contract Service, the service tax is payable on 70% of the total amount charged for Works contract. The outcome of these documents and the observations above sufficiently prove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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