TaxTMI 
TaxTMI 
2024 (9) TMI 1879
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....1191 (Tri. Mumbai) * Infinium Motors Guj. Pvt. Ltd. V. CST, Ahmedabad 2022 (11) TMI 948 (Tri. Ahmedabad) * Jivan Jyot Motors Pvt Ltd V. CCE 2023 (7) TMI 1178 (Tri. Ahmedabad) 3. Shri A R Kanani learned Superintendent AR appearing on behalf of the revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both sides and perused the records. We find that identical issue in the appellant's own case has already been decided by this tribunal reported at CCE & ST-SURAT-I Vs. Ganga Automobiles 2023 (10) TMI 355-CESTAT AHMEDABAD wherein the following order was passed:- "4. We have carefully considered the submission made by both the sides and perused the record. We find that since the entire ground of the revenue is based on the clarification in a Board Circular No.96/7/2007-ST dated 23.08.2007. It is necessary to carefully understand the clarification given by the board. Therefore, the clarifications under the relevant reference code036.03/ 23-08-2007 of the circular No. 96/07/2007-ST dated 23.08.2007 is reproduced below: 036.03/23 Whether spare parts sold by a service station during the servici....
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....r that when the spare parts was sold and VAT was paid no service tax can be charged thereon. Similarly, in the case of handling charges the same is included in the sale value of the sale of the vehicle and on total value the VAT was paid. Therefore, the handling charges are nothing but incidental to the sale of the goods and the same is part and partial of sale value of the vehicle on which VAT was paid. Therefore, no service tax can be charged on handling charges. The issue related to the spare parts as well as the handling charges have been considered in the following Judgments: a) Infinium Motors Guj. Pvt. Ltd. (supra), in this case this Tribunal after considering various judgments given the following concluding findings: "From the above judgments it is seen that various Benches of this Tribunal have taken a consistent view in the identical facts of the present case that where during the provision of Authorized Service Station Services, the spare parts and lubricants sold and VAT thereupon was paid the value of such spare parts and lubricants would not attract Service Tax. Moreover, in some of the judgments, even the fact that one common invoice was issued show....
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.... merely because the part so used in repairs and maintenance were separately billed and VAT was paid thereon, the Tribunal held that on value of such parts, though used for repair and maintenance service of the vehicle will not be liable to service tax as the same was suffered VAT. In this regard the following judgments are reproduced:- (a) In Ketan Motors Limited the Tribunal held as under "5. We have carefully considered the rival submissions. As the issue lies 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....
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....In both the situations, invoice are issued for the sale of the goods as 8 E/12227/2014-DB well as for collection of service charges for the services rendered. Handling charges were incurred in connection with the procurement of the goods and are included in the value of the goods sold and sales tax/VAT liability is discharged on the value inclusive of the handling charges. Therefore, we do not understand how service tax levy would apply especially when the goods are subject to sales tax/VAT on a value inclusive of handling charges. It is not in dispute that the handling charges are incurred in connection with the procurement of the parts. If that be so, they will obviously form part of the value of the goods when they are subsequently sold. 5.1 Section 67 of the Finance Act, 1994 mandate levy of service tax on a value or consideration received for rendering the services. Therefore, any consideration received for supply of goods is not covered within the scope of Section 67. The decisions of the Tribunal in the case of Ketan Motors Ltd. and Dynamic Motors, cited supra, also support this view. 6. Accordingly, the impugned order is clearly unsustainable in law and th....
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....rity. Accordingly, we dismiss the appeal filed by the Revenue as devoid of merits."9 E/12227/2014-DB 8. From the above decision, the conclusion drawn is that when there is sale of goods and VAT is paid no service tax can be demanded. In the present case, it is undisputed that the element i.e. amount towards Handling and Forwarding charges, the appellant have shown as part of the sale value of the goods and VAT was paid. Therefore, following the above principle of law laid-down by Hon'ble Supreme Court and by Tribunals, in the present case the demand is not sustainable. Hence the impugned order is set-aside and the appeal is allowed." From the above decision it can be seen that relying on various other judgment in the appellant's own case the issue has been settled. Therefore in the present appeal also the impugned order is not sustainable, hence the same are set aside. 5. Appeals are allowed. (Order pronounced in the open Court on 26.09.2024) ============= Document 1 PRONDA cbl Dream Honda Jivan Jyet Motors Pvt. Ltd. Niven Jyut Theater Com Udhna Main Road, Surat. PÅ™. 1 +91-361 4000406 E-mail : [email protected] RETAIL INVOICE QNT NO .: ....