Value of spare parts sold during rendering of service not to be included in transaction value

Seva Automotive Pvt. Ltd.'vs. CCE, Nagpur - 2013-TIOL-1322-CESTAT-MUMM

Value of spare parts sold during rendering of service not to be included in transaction value

Facts:

The department contended to levy tax on the value of spare parts sold during rendering of services which were charged separately in the bill/ invoice and on which VAT/sales tax liability was also discharged.

Held:

Relying on the Board Circular dated 23-08-2007 and on the decisions of Ketan Motors Ltd. and Sudarshan Motors, the Hon. Tribunal allowed the appeal by way of remand and held that the cost of spare parts sold during the rendering of service cannot form part of the transaction, value.