CA Bimal Jain
Facts:
Automotive Manufacturers (P.) Ltd. (the Appellant), an authorised dealer of Maruti Udyog Ltd. (Maruti), was registered with the Department as an authorised service station for Maruti cars and they have been discharging the Service tax liability on servicing/repairing of the vehicles undertaken by them. However, while repairing or servicing of the vehicles, the Appellant sometimes used parts, procured from Maruti on which Sales tax/ VAT liability was discharged. For bringing these parts from the warehouse/ depots to their service station, the Appellant had to incur handling charges, which is included in the value of parts sold to the clients, on which Sales tax/ VAT has been discharged. The Department alleged that Service tax was leviable on handling charges.
Held:
The Hon’ble CESTAT, Mumbai, relying upon the decision in the case of Ketan Motors Ltd. Vs. CC, CE & ST [Final Order No. A/321/2013-WZB/C-1 (CSTB), dated 18-2-2013], held that Section 67 of the Finance Act 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 of the Finance Act.
(Author can be reached at Email: [email protected])
