TaxTMI 
TaxTMI 
2018 (9) TMI 389
X X X X Extracts X X X X
X X X X Extracts X X X X
....dated 22.12.2014 passed by the Commissioner (Appeal) Customs And Central Excise, Nagpur to the extent of Rs. 40,39,101/- in so far as it relates to differential payment of Service Tax." 2.1 Respondents in the present case engaged in providing taxable service under the category of "Management, Maintenance or Repair Service" as defined under Section 65(64) and 65(105)(zzg) of the Finance Act, 1994. In respect of certain taxable services provided to M/s WCL Chandarpur, it was observed that respondents had paid service tax at a lower rate under the composition scheme under "Work Contract Services". Issue was taken up and matter adjudicated by the Additional Commissioner holding that the services provided by the respondent were correctly clas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Service Tax Rules, 1994 provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed the amount specified in section 70 of the Act which is Rs. 2,000/- upto Rs. 08/04/2011 and Rs. 20,000/- thereafter." 2.3 Aggrieved by the order department has filed this appeal. Respondents have in this case filed cross objections to the appeal filed by the department. 3.0 From the appeal memo it is quite evident that department is in appeal only for setting aside of the order of Commissioner (Appeal) to the extent it relates to payment of differential duty. The ground specified in the appeal memo being that. i. Works Contract (Composition Scheme for payment of service Tax) Rules, 200....
X X X X Extracts X X X X
X X X X Extracts X X X X
....benefit of Notification No 12/2003-ST would, the tax liability will be nil. He relied upon the decisions referred in the appeal and stated that Appellant is not eligible for benefit of Notification No 12/2003-ST as the value of goods/ material sold while providing the said taxable services has not been shown separately on the invoices. In his submissions he argued in favour of revenue appeal and contended that for this reason the appeal of revenue should be allowed. 3.2 None appeared for the respondents despite notice. However the submissions made by the respondents in the cross objections are taken as submissions for deciding the appeal. 4.0 The only issue that needs to be considered is whether the benefit under Notification No 12/20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....'s order wherein he has relied on the Board's Circular dated 3-3-2006 according to which the appellants could have availed of the abatement only after producing the documentary evidence. She stated that there is actually no documentary evidence for the abatement claimed. This 30% : 70% appears to be arbitrary. In this view of the above, she requested the Bench to uphold the order of the Commissioner of Service Tax. 8. On a very careful consideration of the fact, we find that there is no dispute with regard to the leviability of service tax on the maintenance and repair services. The main point of dispute is with regard to the valuation. However, Section 67 of the Finance Act clearly provides for the abatement of the value of the go....
X X X X Extracts X X X X
X X X X Extracts X X X X
....service is provided if in the course of the provision of the service certain materials are used they will definitely be considered as sale. This is clearly covered by the Constitutional Article 366 (29) (B) cited by the learned Advocate. We do not agree with the learned Commissioner that the said Constitutional provision has no application here. The Maintenance and Repair Contract entered by the appellant with their customers has been recognized as Works Contract by the Government of Karnataka and the registration has been obtained for payment of sales tax. When that is the case, it cannot be said that the spare parts received by the clients of the appellant have not been sold to them. We hold that in any Annual Maintenance Contract the spa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hem during the period covered in the show cause notice. c. Copy of VAT Challans. d. Copy of Chartered Accountant Certificate certifying the payment of VAT against such composite contracts. e. Copy of ledger account pertaining to purchase of materials during the said period. 8.0 During the course of hearing we had perused some of these documents and found that indeed in the work order details of material sold along with the cost of labour and material have been shown both on the work order and the invoices raised. From the perusal of the said documents we are of the view that respondents substantially comply with requirements of the Notification No 12/2003-ST and benefit of the said Notification cannot be denied....