By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
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Repairs & Maintenance of Transformers – no service tax paid on material on which Excise/ Sales Tax is paid and separately indicated on invoice – Notification No. 12/2003, dated 20-06-2003.
Facts:
Assessee was engaged in the manufacture as well as repairs and maintenance of electrical transformers. By virtue of Notification No. 12/2003 dated 20-06-2003, service tax was paid only on labour charges recovered from the customer. It was contended that the contract being a composite contract of service of repairing transformers, it was required to pay the service tax on the total contracted value, including consumables and items used in the repair of the transformers. Tribunal decided the matter in favour of the Assessee. Aggrieved by the same, revenue filed appeal before the High Court.
Held:
The High Court observed that Tribunal has given its decision based on undisputed finding of fact that the value of the goods and materials utilised for repair of the transformers is separately disclosed in the agreement and in the invoices and excise duty/value added tax has been paid on goods used in the repairing process. Therefore, since there is no substantial question of law the appeal is dismissed. It was also noted that, reliance placed by the Tribunal on its own decision in the case of Balaji Tirupati Enterprises vs. CCE [2014] 43 taxmann.com 42 (New Delhi-CESTAT), which is subsequently upheld by the High Court has also not been disputed in the Appeal Memo.
