TECHNOCRATE TRANSFORMERS Vs. COMMISSIONER OF C. EX., KANPUR

JUDGEMENT

(1.) APPEAL has been filed against order -in -original No. 01/ST/Comm/2012, dated 29 -3 -2012 in terms of which service tax demand of Rs. 2,38,10,463/ - for the period 16 -6 -2005 to March, 2011 was confirmed along with interest and penalties. The facts of the case in brief are as under:

(2.) LEARNED DR reiterated the reasoning of the Adjudicating Authority.

(3.) WE have considered the contention of both sides and also perused the records including some invoices. We find that the invoices raised by the appellant clearly indicate the value of the goods separately. Not only that the contract itself while giving the rate of repair package clearly stated the value of labour charges and the value of HV/LV leg oil, transformer oil and supply items. The adjudicating authority has also conceded that the appellant has paid VAT on the items supplied. In these circumstances, we do not find the observation of the Adjudicating Authority to the effect that "in the absence of any specific clause in the contract specifying the quality, make, specification of the items, it would be difficult to concede these a 'sale' even though the service provider has paid VAT on the same" legally valid and sustainable. In the case of CC & CE v. Balaji Tirupati Enterprises - : 2013 (32) S.T.R. 530 (All.) the Allahabad High Court held that goods used during repair were deemed to be sold in the execution of works contract. The Allahabad High Court in that case held as under: