2023 (8) TMI 1732

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....t the appellant is engaged in maintenance and repair services of Heavy Earth Moving Machinery which also entail supply of spare part in respect of such repair. For the purpose of said activity, the appellant entered into long term comprehensive maintenance and repair contracts with Tata Iron & Steel Company in relation to the heavy earth moving machineries like Rear Dump Truck, Dozers etc. procured by TISCO from M/s. Caterpillar India Ltd. and M/s. Caterpillar Singalore. 3. As per the agreement the appellant were charging repair and maintenance fees for supply of spare parts. Ground Engaging Tools fees for supply of ground engaging spare parts replaced during repairs and maintenance, manpower fees for supply of labour charges and on site....

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....ing the actual value of goods and VAT payment made by the appellant holding that Rule 2A(i) of the Service Tax Valuation Rules is not applicable to the present case, therefore, the appellant is liable to pay Service Tax by applying Rule 2A(ii) of the Service Tax Valuation Rules i.e. 70% of the gross consideration received by the appellant. Aggrieved from the said orders, the appellant is before us. 4. The Ld. Counsel appearing on behalf of the appellant submits that the Service Tax is not leviable as composite contract for maintenance and repairs of equipment which entails supply of goods and services for the period up to 01.07.2012. To support this contention he relied on the decision in the case of CCE, Delhi v. Xerox India Ltd. [2019 ....

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....operty goods transferred in execution of the said works contract for determination of the value of the service portion in execution of the contract under the clause which means if the actual value of goods transferred is available on which VAT has been paid, the same shall be excluded from the total value of works contract service and on remaining part of the value, the Service Tax is payable. Admittedly, in the case in hand, the service has been classified under works contract service and the value of goods supplied is ascertainable on which they have paid VAT, therefore, the same has to be excluded from the value of works contract to ascertain the value of taxable service provided by the appellant. Rule 2A(c) of the Valuation Rules only a....