No Service Tax on VAT-Paid Goods used in Auto Repairs: CESTAT Allahabad

Fast Track Auto Care (India) Pvt. Ltd. Vs Commissioner of Central Goods & Services Tax (CESTAT Allahabad)

The taxation landscape in India often poses intricate questions that have significant financial implications for businesses. One such critical issue was recently addressed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad in the case of Fast Track Auto Care (India) Pvt. Ltd. vs Commissioner of Central Goods & Services Tax. The Tribunal clarified that if Value Added Tax (VAT) is paid on goods used in repairs, no service tax can be levied on those goods. This article delves into the details of the case and its implications.

Facts:

An Investigation was conducted against M/s. Fast Track Auto Care (India) Pvt. Ltd. (“the Appellant”).

On the basis of scrutiny of the documents submitted by the Appellant, the Revenue Department (“the Respondent”) issued a Show Cause Notice (“the SCN”) demanding service tax on the value of material/spare parts sold by the Appellant during servicing of motor vehicles.

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