Service tax cannot be levied on component of goods or materials

Service Tax : Where agreement between assessee and DVVNL incorporates separately value of goods or materials from value of services rendered, service tax cannot be levied on component of goods or materials
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[2014] 52 taxmann.com 377 (Allahabad)
HIGH COURT OF ALLAHABAD
Commissioner of Central Excise, Agra
v.
Goverdhan Transformer Udyog (P.) Ltd.*
D.Y. CHANDRACHUD, CJ.
AND PRADEEP KUMAR SINGH BAGHEL, J.
CENTRAL EXCISE APPEAL NO. 241 OF 2014
NOVEMBER  13, 2014
Section 65(64), read with section 66, 66B and 67, of the Finance Act, 1994 - Taxable Services - Management, Maintenance or Repair Services - Assessee provided Management, Maintenance and Repair services for repair of old and damaged transformers to DVVNL - Department sought to include transformer oil, HV/LV coil and spare parts in value of services - Tribunal held that since agreement quantifies value of materials separately from value of services rendered, value of materials or goods would have to be excluded and would not be liable to service tax - HELD : Where agreement between assessee and DVVNL incorporates separately value of goods or materials from value of services rendered, service tax cannot be levied on component of goods or materials - Service tax can be levied on value of services rendered - Hence, view taken by Tribunal does not give rise to any substantial questions of law [Paras 3 and 4] [In favour of assessee]