2014 (3) TMI 226

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....., Nagpur are authorized service agents for Hyundai Motor cars and they undertake maintenance/service of motor cars. They also supply spare parts of these vehicles. During the course of scrutiny of the records of the appellant, it was noticed that the appellant were selling spare parts for motor vehicles during the course of undertaking repair services on which they were paying VAT. However, the value of these spare parts were not included in the consideration received for repair services and service tax liability had not been discharged on the value of such spare parts. Accordingly, a notice dated 17-10-2011 was issued demanding service tax on the entire value of spare parts sold as shown in their balance sheets amounting to Rs. 3,41,19,49....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xcise, Ghaziabad - 2011 (22) S.T.R. 425 wherein a similar issue came up for consideration and the Tribunal prima facie took the view that cost of sale of spare parts would not be includible in the value of services rendered and accordingly granted stay. Accordingly, he pleads for waiver of pre-deposit of the dues adjudged. He also produced specimen copies of invoices showing sale of spare parts as such wherein VAT/CST liability has been discharged as also specimen copies of invoices where both sale of spare parts as also service were involved and in those cases also, they have discharged sales tax liability on the spare parts sold to the customer. 4. The learned Additional Commissioner (AR) appearing for the Revenue on the other han....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....returns for the period 2006-07 to 2010-11. 5.2 However, while confirming the demand, the learned Commissioner has taken the value of sale of spare parts as reflected in the balance sheets. This is incorrect. If a transaction involves only sale of spare parts, the question of levying service tax would not arise at all and therefore, the Commissioner should have excluded those transactions involving pure sale of spare parts. As regards levy of service tax on transactions involving both sale of spare parts as also rendering of service in the Master Circular dated 23-8-2007, it is stated that "service tax is not leviable on a transaction treated as sale of goods and subjected to levy of sales tax/VAT. Whether a given transaction between....