2015 (1) TMI 597

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.... is an authorized service station of M/s. Tata Motors and authorized to do repairs and services of the vehicles manufactured by Tata Motors. In addition to that, the appellant is doing service and repairs of vehicle of other make also. The appellant while doing service replaces certain parts of the vehicle which have been found defective and raises invoice separately showing VAT paid on the material supplied and also show, in the invoice portion, service separately on which the appellant is paying service tax. On the scrutiny of the accounts, it was found that the figure shown in the invoice and taxability of service are much less than figure shown in the balance sheet. Therefore, inquiries were made for short payment of service tax on acco....

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....ed order is required to be set aside. He further submits that in their own case for subsequent period relying on the decision discussed hereinabove, the demand have been dropped following the decision of Ketan Motors Ltd. (supra). 4. On the other hand, the Ld. A.R. opposed the contention of the Ld. Counsel and submits that the nature of the work executed by the appellant is service of the vehicle. Therefore, relying on the decisions of Guntur Tobaccos Ltd. reported in 1965 AIR 1396, Maharashtra Mudran Parishad And 2005 (139) STC 193 Bom., Rainbow Colour Lab, Idea Mobile Communication Ltd. 2011 (23) STR 433 (S.C.), Indian Coffee Workers Co-operative Society Ltd. - 2014-TIOL-499-HC-ALL-ST., to submit that in these cases the Hon'ble Ape....

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.... sell parts of the vehicle as well as provide service of repairs, maintenance of the vehicle. Moreover, the transaction are much relevant to arrive at a decision whether the service tax is payable or not? We have gone through the sample invoices produced by the appellant before us and in those invoices the sale of parts have been shown separately on which VAT has been discharged at applicable rates and service portion of the service provided has also shown separately and paid service tax thereon. Therefore, the case of the appellant is squarely covered by the CBEC Circular No. 96/7/2007 dt. 23.8.2007 when VAT has been paid on the material supplied, they are not required to pay service tax. In these circumstances, we hold that the value of p....