2018 (6) TMI 793

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....ate For the Appellant Shri S.Govindarajan, AC (AR) For the Respondent ORDER Per Bench The brief facts of the case are that the appellants are registered with the department under the category of "Management, Maintenance or Repair Service". On investigations, it was observed that the appellants have entered into composite maintenance contract dt. 09.12.2003 and 10.10.2004 for maintenanc....

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....tract entered by the appellants with M/s.Hindustan Zinc Ltd. is a composite maintenance work which also involves supply of spare parts. The maintenance charges are based on per meter drilling operation of drill rigs. Even as per the agreement the gross amount is bifurcated as 70% towards material portion and 30% towards labour portion. Appellant has discharged VAT on 70% of the material value and ....

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.... Supreme Court's judgment in the case of Safety Retreading Co. (P) Ltd. Vs CCE 2017 (48) STR 97 (SC). It is also argued by her that extended period is not invokable as the appellant has been regularly filing ST-3 returns and discharging service tax correctly on the labour portion. 3. The Ld. A.R Shri S.Govindarajan reiterated the findings in the impugned order. He submits that as per the contra....

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....h there is no dispute about the consumption of materials, the value of gross amount determined arbitrarily @ 70% and 30% towards cost of spares parts and labour respectively is incorrect. Therefore, the demand raised is legal and proper. 4. Heard both sides. 5. The main allegation is that the appellant has artificially bifurcated the value of service part and cost of materials as 70% and 30%....