Service tax not leviable on goods used in repairing if VAT is paid

Last updated: 08 September 2023
Quick Summary
The CESTAT, Allahabad has ruled that service tax cannot be demanded on goods used in repair services if their value is separately shown on invoices and Value Added Tax (VAT) has already been paid on them. This decision means that when VAT is paid on spare parts and materials used during vehicle servicing, these items are considered a sale of goods and are therefore not subject to service tax.

Court :
CESTAT, Allahabad

Brief :
The CESTAT, Allahabad in M/s Fast Track Auto Care (India) Pvt. Ltd. v. Commissioner of Central Goods & Services Tax, Noida [Service Tax Appeal No.70752 of 2017 dated August 02, 2023] set aside the demand order and held that, no service tax is demandable when the goods used for providing repair service are shown separately in invoices and Sales Tax/Value Added Tax ("VAT") is paid on such goods.

Citation :
Service Tax Appeal No.70752 of 2017 dated August 02, 2023

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Bimal Jain
Published in GST
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