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2019 (5) TMI 375 - AT - Service TaxValuation - Maintenance or Repair Services - inclusion of after-sales warranty expenses in assessable value - whether the activity carried out by the appellants herein will be in the nature of a service transaction which would be exigible to service tax under the Finance Act, 1994 or otherwise? - HELD THAT:- It is definitely not the case that the appellants are facilitating procurement of inputs for enabling the assembly of desktop PCs by M/s. HP India. So also, the appellant is not providing any after-sale service for repair or maintenance of HP products. That responsibility has been given to Redington India as per the agreement between HP and Redington. M/s. Foxteq (appellants herein) will invoice HP by the first week of every month for the services performed (and accepted by HP) during the previous month unless a different schedule is expressly stated in Exhibit-B. Thus, it is clear that the appellant is raising invoices each time only when goods are supplied to Redington on behalf of HP. It is also mandated that if VAT is payable by HP, then such amount payable shall clearly be indicated in Foxteq’s invoice to HP and further, that the appellant must not invoice HP for any other taxes. The payment by HP to appellant is also made on receipt of the invoices. The decision of the adjudicating authorities holding that the impugned activities of the appellant would fall within the mischief of Section 65(19)(iv) of the Finance Act, 1994 and that they would be required to discharge service tax liability under that category on the value of the amounts received thereon, cannot be sustained. Appeal disposed off.
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