TaxTMI 
TaxTMI 
2023 (7) TMI 1120
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....ial service tax demand was raised and the same was confirmed by the Adjudicating Authority and held by the Commissioner (Appeals) in the impugned order. Therefore, the present appeal. 2. Shri M. G Yajnik, Learned Advocated appearing on behalf of the Appellant submits that the issue is no longer res- integra in view of the following judgments :- Samtech Industries vs. Commr. C.Ex.Kanpur -2015 (38) STR 240 (Tri.Del) Commissioner vs. Samtech Industries - 2015 (38) STR J343 (All.) Commr. of C.Ex., Mumbai Vs. Seva Automotive Pvt. Ltd. - 2016 (46) STR 428 (Tri.-Mumbai) Tanya Automobiles (P) Ltd Vs. Commr. C.Ex., & ST., Meerut-I - 2016 (43) STR 155 (Tri.All) Commr.C.Ex., & ST., Meerut- II Vs. Krishna Swaroop Agarwal - 2015 (37) STR 647 (Tri. Del) 2.1 He submits that since the consumables were sold on principle to principle basis to the customers of vehicles during service and VAT was paid thereon, the same cannot be included in the gross value of the service. 3. Shri Himanshu P Shrimali, Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both sides and perused the....
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....nvoices for sale of spares. It further appeared to the Revenue that the spare parts and consumables utilized in the course of servicing of vehicles without which the service is not complete and hence an integral part of service. Accordingly, Service Tax was proposed to be levied on the amount relatable to spare parts and lubricants for the extended period October, 2006 to December, 2011 amounting to Rs. 5,81,935/- with interest and further proposal of penalty under Sections 76, 77 & 78 of the Finance Act. 2. The appellant contested the show cause notice by filing a written submission pointing out that they are showing the spare parts and lubricants separately in the invoice on which VAT/Sales Tax is being paid and on service components and labour charges, the Service Tax is being paid. Thus, no Service Tax can be levied on the sale of goods. 3. The show cause notice was adjudicated vide Order-in-Original dated 8-3-2013 and reduced amount of Rs. 4,74,146/- was confirmed considering that the appellant have already deposited an amount of Rs. 1,10,635/- for the period April, 2011 to December, 2011 which was confirmed by the Asstt. Commissioner along with interest and further penalt....
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....ying Service Tax on labour charges, i.e. servicing components of the bills and paying VAT on value of the spare parts and consumable and lubricants." "I have perused copies of two sample bills enclosed with the appeal and find that the consumables e.g. gasket, filter, components, busing etc. are shown sold along with the service, are in the nature of integral part of the service." Accordingly, he urges that in view of the categorical finding that the appellants have charged the spare and lubricants separately in their invoice and have paid Sales Tax on the same, no Service Tax can be demanded and the learned Commissioner (Appeals) has erred in holding that Service Tax is applicable on the goods and lubricants observing that the service is not complete without using of consumables and lubricants. 6.2 The learned Counsel further points out that ruling of the Tribunal in the case of Samtech Industries (supra) has been upheld by the Hon'ble High Court of Allahabad reported at 2015 (38) S.T.R. J434. The learned Counsel also brings to our notice that in similar facts and circumstances in the case of M/s. Balaji Tirupati Enterprises, the C.B.E. & C. (Legal Cell) vide their letter da....
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....ir Service Tax liability on the gross value of services but they did not take into account of the cost of spare parts or accessories or consumable such as lubricants and coolants provided/used during servicing of the vehicles. Adjudicating authority confirmed the demand amounting to Rs. 11,83,832/- along with interest and mandatory penalty. The Commissioner (Appeals) set aside the said Order-in-Original on the following grounds. (i) Under Section 67 of the Finance Act, the taxable value is the gross amount charged for the taxable service. (ii) Even in terms of Notification No. 12/2003-S.T., the value of the goods and materials sold by the service provider to the recipient of service is exempt from the Service Tax. (iii) As per the C.B.E. & C. Circular No. 699/15/2003-CX, dated 5-3-2003 the price charged by authorised service station for engine oil, gear oil and coolants, etc., is towards the sale of these consumables to the customer. Therefore, the sale of consumables during course of providing service is akin to sale of parts/accessories and therefore value of such consumables is not includible in the value of taxable services provided value of such consumables is shown sepa....