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2018 (6) TMI 1198 - CESTAT BANGALOREValuation - Authorised service station service - Free services during warranty period - reimbursement or not? - inclusion of the amount received as reimbursement in assessable value - Held that:- The SCN as well as the orders of both the lower authorities are based on Clause 4.4 of the dealership agreement, which is not related to free warranty. Free warranty is provided in terms of clause 7.3 of the agreement. The said clause does not provide for any reimbursement. The issue of liability to service tax for free services provided to car purchasers by the authorised dealers is already settled in favour of the assessee by this Tribunal in the case of Jabalpur Motors Ltd. [2015 (1) TMI 1140 - CESTAT NEW DELHI], where it was held that the respondents have not provided the service of authorised service station to them (i.e. M/s. MUL). Accordingly this amount cannot be made liable to service tax under the category of authorised service station service. Appeal allowed - decided in favor of appellant.
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