TaxTMI 
TaxTMI 
2023 (7) TMI 1178
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....charges. However, VAT was paid on the total value of the invoice including charges of handling and forwarding. The case of the department is that handling and forwarding charges collected by the appellant from their customers is liable to service tax under the head of Business Support Service/ Business Auxiliary Service. 2. Shri Jigar Shah, learned Counsel appearing on behalf of the appellant submits that firstly, the show cause notice is confusing inasmuch as that it could not conclude that whether the activity handling and forwarding charges is falling under the category of Business Auxiliary Service or Business Support Service, for this reason itself the show cause notice is ab-initio void and not legal hence, the demand is not sustaina....
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.... that handling and forwarding charges which was charged by the appellant from customers is undisputedly a part of sale price. For ease of reference, sample copy of the sale invoice is scanned below : - 6. From the above invoice it can be seen that VAT 12.5% was calculated on the total value i.e. basic price plus handling and forwarding charges and paid to the concerned State authorities. In this fact, as per the above invoice, handling and forwarding charges nothing but part of the sale value of the vehicle sold by the appellant to their customer. It is obvious that sale value consists of various elements and the same cannot be vivisected to contend that some part of the value represent to the sale of goods and some part towards service. O....
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....ies in a narrow compass, after dispensing with the requirement of pre-deposit, we take up the appeal itself for consideration. 5.1 In para 3.2 of the impugned order it is stated that the appellant had furnished the following information and documents vide letter dated 21-9-2011 : (i) Year wise details of value of spare parts used during the course of servicing of motor vehicles for the period 2006-07 to 2010-11; (ii) Copy of Balance Sheet, Profit & Loss Account for the year 2006-07 to 2009-10; and (iii) Copy of ST-3 returns for the period 2006-07 to 2010-11. 5.2 However, while confirming the demand, the learned Commissioner has taken the value of sale of spare parts as reflected in the balance sheets. This is incorrect. If a ....
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....the purpose of computation of service tax demand. Secondly, even in a case where the transaction involves both sale of spare parts and also rendering of service, the value of sale of spare parts should be excluded if sales tax/VAT liability has been discharged on such sales as is evident from the invoices/bills issued in this regard. The appellant is directed to produce before the adjudicating authority all the evidences they would like to rely upon in support of their above contention." (b) In Automotive Manufacturers P. Limited the Tribunal passed the following order:- "5. We have carefully considered he submissions made by both the sides. We notice that the appellant are charging handling charges whenever automobile parts are sold ei....
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....uthorised service station" and rendering services as such and discharging service tax liability on their activities. While rendering the said services, the recipient also sells spare parts of automobiles. The spare parts were received from the manufacturers and the respondent charges handling charges for handling of these spare parts at their service stations. The Revenue was of the view that the handling charges for the spare parts should form part of the taxable value of the service rendered by the appellants. Accordingly, a notice dated 16-2-2005 was issued demanding service tax of Rs. 2,52,543/- for the period July, 2001 to February, 2004. The said demand was confirmed vide order dated 18-5-2006. Against this, the respondent preferred a....