TaxTMI 
TaxTMI 
2014 (7) TMI 280
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt : Sri S. Misra, Addl. Commissioner(A.R.) JUDGEMENT Per DR. D.M. MISRA; This is an application seeking waiver of pre-deposit of Service Tax of Rs. 52.97 Lakhs and equal amount of penalty imposed under Section 78 of the Finance Act, 1994. 2. At the outset, the Ld. Advocate Shri Ravi Raghavan for the applicant submits that under contract with various clients, the applicant had provided....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appropriate service tax on the said service. He submits that this Tribunal in the case of Surya Transformers Vs. Commr. of Central Excise, Kanpur-2013 (30) S.T.R. 661 (Tri.-Del.) had observed that in the event VAT/Sales Tax is paid on the spare parts/ materials used in providing services, its value cannot be included in the service portion of the contract, for discharging the service tax. He subm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4. Heard both sides and perused the records. Prima facie, we find that against agreement with various clients, the applicant had rendered the services of maintenance and repair work, a fact not in dispute. It is also not in dispute that under the said agreement, the value of spare parts and the value of services had been specifically mentioned. Also, it is not in dispute that appropriate VAT has a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; 5. In the present case, we find that there is clear finding by the Commissioner that the proper taxes have been paid on such goods which are used in providing service. However, he has not extended the benefit to the appellant by simply observing that replacement of parts was an integral condition of the contract and without fulfilling that condition the contract cannot be said as....