Abatement on maintenance and repair services upheld where sales tax and inventory records supported actual sale of materials.

Maintenance and repair service providers were held entitled to abatement under Notification No. 12/2003-ST because the record showed actual supply of materials: sales tax had been discharged on 70% of the contracted value under section 7C of the TNGST Act, 1959, and customer-wise inventory with details of spare parts and consumables supported the value of goods sold. On that basis, the department's objection that no sale of materials had occurred was not accepted, and the Commissioner (Appeals)' order allowing abatement was sustained.

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Issues: Whether the respondents were entitled to abatement under Notification No. 12/2003-ST dated 20.6.2003 despite the department's objection that there was no actual sale of materials.

Analysis: The respondents were providing maintenance and repair service and had discharged sales tax on 70% of the contracted value under section 7C of the TNGST Act, 1959. They had also maintained customer-wise inventory and supplied details of spare parts and consumables to each customer, which supported the value of material sold. In these circumstances, the objection that no sale had taken place did not warrant interference with the order of the Commissioner (Appeals).

Conclusion: The respondents were eligible for abatement under the notification, and the appeal was dismissed.

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