Service Tax on Repair Services: Excluding Material Value from Taxable Services Under Finance Act and CGST Act.

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....Recovery of service tax u/s 73(2) of Finance Act, 1994 and section 174 of CGST Act, 2017 with interest and penalty was challenged. The issue pertained to classification of repair and maintenance activity involving supply of materials as works contract service and exclusion of value on which VAT was paid to determine taxable value of services. The Tribunal held that when invoices separately show value of goods and service charges, service tax is chargeable only on service/labor charges, and value of goods used for repair is not includable in assessable value. The Commissioner erred in including value of spare parts in assessable value as it was a composite contract involving supply of goods and services. Service tax was not leviable on compo.........