2025 (4) TMI 1331

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..... x Appeal No. 85117 of 2018 - FINAL ORDER NO. A/85736-85740/2025
Service Tax
HON'BLE MR. S.K. MOHANTY, MEMBER (JUDICIAL) And HON'BLE MR. M.M. PARTHIBAN, MEMBER (TECHNICAL) Ms Puloma Dalal, Chartered Accountant for the Appellants Shri Shashank Kumar Yadav, Authorized Representative for the Respondents ORDER Per : S. K. MOHANTY These appeals are directed against the impugned order dated 15 .....

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..... the labor component and not on the cost of the spare parts. Such modus operandi adapted by the appellants was disputed by the department on the ground that as per the provisions of Section 67 of the Finance Act, 1994 read with Rule 6(vi) of Service Tax (Determination of Value) Rules, 2006, the appellants were required to pay service tax on the full amount/cost received as reimbursement from the m .....

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..... y the appellants. 3. Heard both sides and perused the case records. 4. It is an admitted fact on record that on the value of the parts used for replacement by the authorized service station, VAT was paid by the appellants, considering the same as 'sale of goods' and the liability for service tax on the labor component was also discharged by the appellants, treating the same as service. Since, th .....

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..... ir and maintenance service of the vehicle, the same is clearly sold to the client on which the VAT was paid. Therefore the parts used for providing repair and maintenance service is sale of goods and not part of service, therefore the same is not taxable under the Finance Act, 1994. Moreover, even if the part replaced during repair and maintenance of the vehicle is considered as part of the overal .....

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..... s used for provision of the output service, it cannot be said that such service is not confirming to the definition of input service, for the purpose of taking of cenvat credit thereon. We find that in an identical situation, the Tribunal in the case Endurance Technologies Pvt. Ltd. V/s. Commr. of C.Ex., Aurangabad-2013 (32) S.T.R. 95 (Tri.-Mumbai) has allowed the cenvat credit taken on the Mandap .....

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