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TMI Blog2024 (9) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... - invocation of Extended period of limitation. HELD THAT:- The decision of the Tribunal in M/S. SAMTECH INDUSTRIES AND OTHERS VERSUS CCE. KANPUR AND OTHERS [ 2014 (4) TMI 995 - CESTAT NEW DELHI] clearly holds that when invoices are issued showing the value of the goods used and the service charges separately, service tax would be chargeable only on the service/labour charges and the value of goods used for repair would not be includable in the assessable value of the service. The Commissioner was not justified in including the value of spare parts in the assessable value of service, as the contract was a composite contract involving supply of goods (spare parts and consumer bills) as well as provision of services (repair and maintenance). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 with M/s. Northern Coalfields Ltd [Northern Coalfields] in relation to the Heavy Machinery namely BE1600 Hydraulic Face Shovel of bucket capacity 9.4, CuM for a period of 7 years starting after the completion of warranty period of Heavy Machinery. The aforesaid contract was a composite contract for supply of spare parts and consumables as well as repair and maintenance services, for which the appellant charged 'spares and consumables charges' and 'overhead and supervision charges' at a rate per working hour of the Heavy Machinery. 4. The appellant also undertook rehabilitation and repair services of Heavy Machinery Machines at its service centre pursuant to work orders placed on the appellant by the customers, such as Raja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be recoverable on the amount of cost of spare parts. 8. Shri B.L. Narasimhan, learned counsel for the appellant assisted by Shri Ashutosh Choudhary submitted that; (i) The issue involved in this appeal is covered by various decisions of the Tribunal wherein it has been held that the activity of repair and maintenance, if provided along with material, merits classification under works contract service and the amount on which VAT has been discharged by the assessee has to be excluded from the value of works contract to ascertain the value of taxable services provided by the assessee; and (ii) The extended period of limitation could not have been invoked in the facts and circumstances of the case. 9. Shri Sangeet Kumar Meena, learned authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sformer 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 this, the appellants contracts with their customers have to be treated as split contracts for supply of goods and rendering the service. When the value of the goods used has been shown separately in the invoices and Sales Tax/VAT has been paid on the same, the supply of the goods would have to be treated as sale and the transactions which are sale, cannot be the part of service transaction. In view of this, we hold that Service Tax would be chargeable only on the Service/Labour charges i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Appeal No.ST/286/2012 also stands disposed of as the appeals itself has been allowed. 13. The aforesaid decision of the Tribunal in Samtech Industries clearly holds that when invoices are issued showing the value of the goods used and the service charges separately, service tax would be chargeable only on the service/labour charges and the value of goods used for repair would not be includable in the assessable value of the service. 14. The same view was also expressed by the Tribunal in M/s. Voltas Limited vs. Commissioner of CGST Central Excise, Kolkata North Commissionerate [2023 (9) TMI 1255-CESTAT KOLKATA]. 15. This issue was also examined by a Division Bench of the Tribunal in M/s. MG Motors vs. Commissioner of Central Excise, Alw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch parts or any goods used in providing the service wherein value of such goods has been included in the bill. The service provider is also entitled to take input credit of service tax paid on any taxable services used as input services for servicing of vehicles 7. A bare perusal of the aforesaid Circular dated 23 August 2007 indicates that Service Tax would not be leviable on a transaction treated as sale of goods and subjected to levy of Sales Tax/ VAT and whether a given transaction between the service station and the customers is a sale or not is to be determined taking into account the real nature and material facts of the transaction. The Circular also clarifies that payment of VAT or Sales Tax on a transaction indicates that the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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