2017 (6) TMI 1324

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....er (Technical) For the Appellant : Mr. Shailendra Vijay (Advocate) For the Rspondent : Mr. Sanjay Jain, DR ORDER Per Ashok K. Arya: These appeals are directed against orders-in-original No. 49/2016-17 dated 04.10.2016 and 53/2016-17 dated 19.10.2016 passed by Commissioner where-under demand of service tax on the gross value of spare parts used for servicing of the vehicles by author....

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.... sold for providing the service, service tax cannot be demanded. In this regard the Tribunal in this case observes as under: "5. We have considered the submissions from both the sides and perused the records. The appellants provided the services of repair of transformers to their customers and in course of repair, they used various parts and consumables like transformers oil, for which se....

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....e sale, cannot be the part of service transaction. In view of this, we hold that Service Tax would be chargeable only on the Service/Labour charges i.e. on service component and the value of goods used for repair would not be includible in the assessable value of the service. The ld. DR has cited Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 accordingly to which that "where any....

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....ble Delhi High Court, the value of goods used for providing the service, which had been shown by the appellant separately in their invoices and on which Sales Tax/VAT had been paid, cannot be included for assessable value and no Service Tax can be charged on the same. The impugned orders, therefore, are not sustainable. The same are set aside. The appeals are allowed. Miscellaneous Application No.....