Tribunal Grants Appeal on VAT Inclusion Dispute

The Tribunal allowed the appeal, setting aside the impugned order and granting consequential relief. The dispute centered on whether the value of consumable and parts, on which VAT was paid, should be included in the total value of services provided by the appellant, registered for "Service of Motor Vehicle" and "Business Auxiliary Service." Precedents, including decisions upheld by the Hon'ble Allahabad High Court, supported the appellant's position, leading to a favorable outcome.

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Issues:
Whether the value of consumable and parts on which VAT is paid by the appellant should be included in the value of services provided.

Analysis:
The appellant, registered with the Service Tax Department for "Service of Motor Vehicle" and "Business Auxiliary Service," raised a dispute regarding the inclusion of the value of consumable and parts, on which VAT was paid, in the total value of services provided. Both parties acknowledged that the issue had been settled by previous Tribunal decisions upheld by the Hon'ble Allahabad High Court. Reference was made to the case of Samtech Industries vs. Commissioner of Customs & Excise, Kanpur, confirmed by the High Court, along with other decisions like M/s Doon Valley Motors vs. Commissioner of Central Excise, Service Tax, Meerut-II and M/s J P Transformers vs. Commissioner of Central Excise & Service Tax, Kanpur. Given the precedents, the Tribunal set aside the impugned order and allowed the appeal with consequential relief.

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