TaxTMI 
TaxTMI 
2024 (12) TMI 743
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....are that the appellant is a proprietor of M/s Panchkula Auto Services which is an Authorized Service Centre of Maruti Suzuki and is engaged in providing repair and maintenance services and is duly registered with the service tax department. On the basis of third-party information received from the income tax department, gross receipts shown in Form 26-AS; income tax returns and service tax returns were taken into consideration by the department and it was alleged that the appellant had paid service tax on lesser value as per service tax returns as compared to figures shown in income tax returns. On these allegations, a show cause notice dated 22.10.2021 was issued to the appellant raising demand of service tax amounting to Rs.23,01,562/- al....
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....ot sustainable being beyond the legislative competence. Further, the learned Counsel refers to Section 66D(e) of the Finance Act, 1994 and submits that trading of goods specifically falls in negative list and the services falling under negative list are specifically excluded from charge of service tax in terms of Section 66B of the Act. 4.3 The learned Counsel further submits that the Commissioner (Appeals) has dismissed the appeal and confirmed the demand on a new ground which was not the part of Order-in-Original. 4.4 The learned Counsel further submits that this issue is no longer res integra and the Tribunal has consistently held in various decisions that when a transaction is subject to VAT, then service tax cannot be demanded on the....
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....supplied at the time of servicing of the vehicles. 7. Further, we find that the Adjudicating Authority has misinterpreted the circular dated 23.08.2007 and has not produced the entire circular, which was subsequently produced in the decision of the Tribunal in the case of M G Motors vs. CCE, Alwar - Final Order No. 51579/2019 dated 13.11.2019 in ST Appeal No. 51890 of 2015. We find that this issue is no more res integra and has been elaborately discussed by the Principal Bench of the Tribunal in the case of M G Motors vs. CCE, Alwar (supra), wherein identical issue was involved and the Tribunal after relying upon the decision Samtech Industries vs. CCE, Kanpur - 2015 (38) STR 240 (Tri. Del.) has held that when invoices are issued showing t....
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....the part of service transaction. In view of this, we hold that Service Tax would be chargeable only on the Service/Labour charges i.e. on service component and the value of goods used for repair would not be includible in the assessable value of the service. The learned DR has cited Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 accordingly to which that "where any expenditure or costs are incurred by any service provider in the course of providing a taxable service, all such expenditures or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value of the services for the purpose of charging Service Tax on the said service, unless such costs or expenditur....