2023 (8) TMI 1235

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....s of third party information, investigation was conducted against the Appellant for the period from 2011-12 to 2014-15. On the basis of scrutiny of the documents submitted by the Appellant, a show cause notice was issued demanding service tax amounting to Rs.4,06,44,637/- alongwith interest and for imposition of penalty under section 78 of the Finance Act, 1994. In the show cause notice, service tax amounting to Rs.270,79,523/- was demanded on the value of material/spare parts sold by the Appellant during servicing of motor vehicles. Written reply to the show cause notice was submitted wherein Appellant inter-alia contested the demand of service tax on sale material/spare parts. The demand as proposed in the show cause notice was confirmed ....

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....ands settled by the order of another Division Bench of this in the case of Samtech Industries v. Commissioner of Central Excise - 2015 (38) S.T.R. 240 (Tri.-Del.), wherein the assessee was providing the service of repairing transformer and was using consumables like transformer oil and also component parts being coil etc., the Tribunal held, in view of the fact that it is not disputed that in respect of the supply of goods, used for providing of service of repair, Sales Tax/VAT is paid, which fact is evident from the invoice on record. It was also observed that when the value of goods used is shown separately in the invoice and on the same Sales Tax/VAT has been paid, the supply of the goods would have to be treated as sale and the transact....