2023 (11) TMI 612

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....as part of goods sold, subjected to VAT, under the taxable service category of "business auxiliary services" - Rs. 46,18,910/- ii) Whether service tax is payable on the value of paints procured by the Appellant and used for repairing activities, under the taxable service category of "management, maintenance and repair services" - Rs. 16,58,843/- iii) Whether service tax is payable on value of design charges paid by the Appellant to the companies outside India, under reverse charge, under the taxable service category of "consulting engineering service" - Rs. 25,70,965/- 2. The issue involved in Appeal No. ST/30493/2018 is - whether service tax is payable on handling charges received by the Appellant and recovered as part....

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....le rendering works contract service. He submits that this has been done in accordance with law. In any case, as an alternative submission, he also submits that the item has to be considered as sold, and according to Notification No. 12/2003, the value equal to the value at which the goods are sold can be excluded and there is no stipulation that such sale price should be equal to the cost. The learned AR draws the attention to the observations of learned Commissioner in the impugned order, wherein, he has observed that the paint is procured by the Appellant on behalf of the ship owner and this conclusion comes from the agreement, which provides that the paint shall be procured by the Appellant and utilized and charged to the ship owner at c....

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....ant is concerned, the decision of the Tribunal in the case of Shri Ram Switchgears vs CCE, Meerut-II [Final Order No.58062/2013] would apply to the facts of this case. Paras 4 & 5 of the Order cited are relevant and are reproduced below: "4. The agreement between the appellant and M/s Paschimanchal Vidyut Vitran Nigam Ltd, Meerut separately categorized the cost of components to be incorporated/ replaced in the maintenance of transformers, such as fuel oils, coils, etc., and labour costs. The components whether the Appellant replaced, namely HV/LV leg coil, transformer oil, etc., have already suffered excise duty or sales tax/ trade tax, as the case may be. Appellant therefore excluded the cost of these components which are separate....