2019 (2) TMI 312

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....ve gone through the impugned order. 2. As per the facts on record the appellant is manufacturer of LPG Gas Cylinders as also providing services of maintenance and repair of old LPG Gas Cylinders. They were paying service tax under the category of maintenance and repair only on the charges recovered from their clients for the said activity but were excluding the cost of various raw materials like Oil, Wire, Paints, VP Rings and other items used in such repair activities. 3. On entertaining a belief that value of the services would also include the value of the raw materials/ inputs/items used in providing such services, Revenue initiated proceedings against the appellant, resulting in passing of an Order-in-Original confirming demand t....

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....ch has further been certified by a CA. VAT has been discharged by the appellant on the goods/items consumed in the repair of such cylinders. The goods/items which are consumed in the repair of cylinders is determined by the wok order placed on them for the fixed quantity of cylinders repaired in a month or period by the oil companies. Total value of goods/items consumed is valued at 115% of the landed cost of such goods/items. Accordingly the liability of VAT is discharged for that particular month or period. This is evidenced by the calculation sheet of stores /goods /items consumed for repair of cylinders & accordingly to which the VAT is paid, which also tallies with UPVAT returns submitted by the appellant. In view of the above discussi....

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....milar stand has been taken by the Tribunal in the case of Adore Fontech [2014 (36) STR 146 (T)] and by the Hon'ble High Court in the case of CCE Agra Vs Goverdhan Transformer Udyog Pvt. Ltd. [2015 (37) STR 161 (All)]. Further in the case of CCE Lucknow Vs Mahindra Engineering Ltd. [2015 (38) STR 233 (All)] & Samtech Industries Vs CCE Kanpur [2015 (38) STR 240 (T)] a similar stand has been taken. Hence, I am not inclined to go with the findings of the lower authority." 5. As is seen from the above reproduced part, the items used in repair activities have already discharged the VAT liability and there is no dispute about the same. Further the Appellate Authority has referred the various decisions including the decision of Hon'ble A....