TaxTMI 
TaxTMI 
2014 (7) TMI 115
X X X X Extracts X X X X
X X X X Extracts X X X X
....rtment. The appellant also entered into contracts with M/s. Dakshinanchal Vidyut Vitran Nigam Ltd., Agra (hereinafter referred to as DVVNL) and with M/s. U.P. Power Corporation Ltd., Lucknow (UPPCL) for repair and maintenance of the transformers. Consequently, they registered themselves with the Service Tax Department and was discharging their service tax liability under the service head 'Management, Maintenance and Repair'. 2. Investigations initiated against the appellants revealed that they were paying service tax only on the ' Labour Charges', in terms of the contract entered into by them with the said two customers. The detailed enquiry was caused, wherein the copies of the agreements entered into by the appellant were calle....
X X X X Extracts X X X X
X X X X Extracts X X X X
....seventeen thousand two hundred and eighty five only) along with confirmation of interest and imposition of penalty under various sections of the Finance Act, 1994. Hence, the present appeal. 4. We have duly heard Shri Ankit Jain, Ld. Advocate for the appellants and Shri Amresh Jain, Ld. Departmental Representative for Revenue. 5. After appreciating the submissions made by both the sides and after going through the impugned order, we find that admittedly, the contracts entered into by the appellants with their customers gave the total break-up of various charges. The labour charges were shown separately as also the cost of HV/LV leg oil transformers and other supply items. However, in as much as the break-up of the total charges was sh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned in different heads in the invoices received by the party and central excise duty or sales tax has been paid by the appellant on cost of LV/HV leg coils, transformer oil and purchased items, but held that the said goods cannot be said to have been sold to the buyers. He has also observed that the fact that the excise duty or sales duty has been paid on the said goods is not the criteria to decide whether goods are sold or not. 6. We find that there is no dispute about the factual aspects. Admittedly, the contract showed the cost of each and every item separately. It also stands mentioned in the contract that the appellants will pay the excise duty, VAT on goods used in the repairing and manufacturing process and service tax on the lab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lue break-up was on account of price variation and the appellants were not having any option not to replace the said items. For better appreciation, we reproduce the relevant paragraphs from his order:- "25. In this regard, I am in agreement with the party's view that while providing any kind of service of repair and maintenance, if any goods are replaced which are separately identifiable and on which proper taxes have been paid, the value of such goods should be excluded from the total value charged for the purpose of levy of Service Tax and the Service Tax should only be charged on the value representing the labour charges etc. as provided under Notification No.12/2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Tribunal in the case of Balaji Tirupati Enterprises Vs. CCE, Meerut in Final Order No.ST/A/735/2012-CU[DB], dated 21.11.2012, which stands upheld by the Hon'ble High Court of Allahabad reported in 2013 (32) S.T.R. 530 (All.). It stands observed by the Hon'ble High Court that the goods which were deemed to be sold in the execution of works contract shall not enter into the purview of levy of service tax. The facts of the case in the case of Hindustan Aeronauticals ltd. Vs. CST, Bangalore [2010 (17) S.T.R. 249 (Tri.-Bang.) are more or less identical to the facts in the present case. The appellants therein entered into a fixed price quotation for doing the work of Ministry of Defence. In the invoices being issued by them the cost....