TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, in a repair and maintenance contract where the value of materials and spare parts used was separately disclosed in the agreement and invoices and duty/VAT was paid on such goods, service tax could be levied on the entire contract value including the value of the goods.
Analysis: The contract and invoices separately showed the cost of labour and the cost of materials used in the repair of transformers. The separate break-up being stated for price variation did not alter the legal position that the value of goods and materials sold to the service recipient had been specifically identified. Notification No. 12/2003-ST exempted the value of goods and materials sold by the service provider, subject to documentary proof of such value. Since the materials were separately identified and excise duty, VAT/CST had been paid on them, they were to be treated as sold goods and could not again form part of the taxable value for service tax. The existence of a repair package or mandatory replacement clause did not justify taxing the value of goods that were separately accounted for and on which appropriate taxes had already been paid.
Conclusion: Service tax was not payable on the value of the materials and spare parts separately shown and taxed, and the demand on that portion was unsustainable.
Ratio Decidendi: Where materials used in a repair or maintenance service are separately identified in the contract and invoices and are subjected to sale tax or excise duty, their value is excluded from the taxable value of service under Notification No. 12/2003-ST.
TaxTMI 
TaxTMI 
