COMMR. OF C. EX. Vs. MAHENDRA ENGINEERING LTD.

JUDGEMENT

(1.) The appeal by the Revenue arises from an order of the Customs, Excise and Service Tax Appellate Tribunal (The Tribunal) dated 26 February 2014. The Revenue has formulated the following question of law:

(2.) The issue before the Tribunal was whether the assessee was liable to pay Service Tax on the gross amount charged in the repair of transformers including value of consumables like transformer oil and component parts. The Tribunal has observed that in the invoices issued by the assessee, the value of goods used, such as transformer oil and service charges are shown separately and in respect of the supply of consumables used in providing the service of repair, sales tax or, as the case may be, VAT is paid. The Tribunal, in this factual situation, observed that when the value of goods used was shown separately in the invoices on which sales tax or VAT has been paid, the Service Tax would be chargeable only on the service/labour component and the value of goods used for repair would not be includible in the assessable value of service.

(3.) The learned counsel appearing on behalf of the Revenue has fairly placed before the Court a decision of this Court in Commissioner, Customs and Central Excise v. Balaji Tirupati Enterprises,2013 32 STR 530 in which a similar issue was answered against the Revenue. In the grounds which have been formulated by the Revenue, the admitted position of fact has not been disputed, as stated in the order of the Tribunal. Hence, the appeal will not give rise to any substantial question of law particularly having regard to the earlier judgment of the Division Bench in Balaji Tirupati Enterprises . The appeal is, accordingly, dismissed. There shall be no order as to costs.