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2012 (5) TMI 520 - AT - Central ExciseCENVAT Credit - Credit taken on freight amount involved in transporting the motor vehicles from the factory to the dealer’s premises - Held that:- The respondents are undisputedly having dual roles, one as dealer of the motor vehicle and the other as the authorized service station. The GTA services utilized for the purpose of transport of the vehicle to the dealer’s premises relate to their activities as a dealer. This GTA services cannot be treated as input services in respect of activities undertaken by the respondent as authorized service station - The activity of providing Teflon Coating at the time of sale cannot be construed as a service or repair provided by an authorized service station even though the same dealer may also be authorized to carry out after sale services. The authorized sales dealer and authorized service station are appointed to perform two distinct functions for the car manufacturer and therefore the activity performed at the time of sales of vehicle by the dealer is distinct from the service provided by the authorized service station. Normally, authorized service station comes into picture only after vehicle comes on road. Therefore, it is envisaged appears that any activity of sales dealer at the pre-sale stage or at the time of sale will not come under the purview of service tax - GTA services utilized for transport of the motor vehicles cannot be treated as input services for the activities of the respondent relating to the authorized service station - Decided in favour of Revenue.
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