2014 (11) TMI 468

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....rs as such service tax is not demandable on the value of the said goods ignoring the fact that as per contract the respondents were under obligation to replace the damaged parts and to return the transformers in a proper working condition. (ii) Whether the Hon'ble CESTAT has erred in not observing the fact that the issue involved in M/s Balaji Tirupati Enterprises decided by CESTAT vide Final Order No.ST/A/735/12 dated 21.11.12 relied upon is related with "works contract service" whereas in the instant case the issue is related with "maintenance and repair service" (iii) When the Hon'ble Apex Court in the case of Idea Mobile Communication [2011 (23) STR 433 (SC)] has held that value of SIM Cards form part of activation charges as ....

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.... value of the materials or goods would have to be excluded since that component is not liable to service tax. A similar issue has been considered by a Division Bench of this Court in Commissioner of Customs and Central Excise Vs. J.P. Transformers (Central Excise Appeal No.159 of 2014) decided on 25 August 2014. The relevant part of the judgment reads as follows:- "In appeal, the Tribunal has held that that there was no dispute about the following factual aspects: (i) the contract showed the cost of each and every item separately; (ii) as a matter of fact, the Commissioner had accepted that the invoices reflected separately the value of various items such as HV/LV Leg Coils and Transformer Oil on which the assessee paid tax including va....