TMI Blog2013 (10) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... of the value of taxable service – Assessee contended that the Revenue has demanded service tax considering the value of parts as reimbursable expenses as per Rule 5 of the Service Tax Valuation Rules and contend that this rule has been struck down - Held that:- Prima facie materials consumed in providing service as in re-treading of tyre was different from parts replaced as in servicing of vehicl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i K.P. Muralidharan, Superintendent (AR) ORDER Per Mathew John; 1. The applicant, who is an authorized agent of M/s. Bajaj Auto Ltd. (BAL), sells the vehicles manufactured by them and also provides service both during the warranty period and after the warranty period. The dispute involved in these cases is about free service provided during the warranty period. The service is free to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cond appeal (ST/400/12) along with interest and penalty of equal amounts under Section 76 of the Finance Act, 1994. There is also a penalty of Rs.5000/- imposed under Section 77 in both the appeals. 2. The counsel for applicant submits that Revenue has demanded service tax considering the value of parts as reimbursable expenses as per Rule 5 of the Service Tax Valuation Rules and contend that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended. He also relies upon decision of Safety Retreading Company (P) Ltd. Vs CCE Salem 2012 (26) STR 225 (Tri.-Chennai). 4. Considered the argument on both sides. Prima facie materials consumed in providing service as in re-treading of tyre is different from parts replaced as in servicing of vehicles because in the matter the transaction for the material is easily discernible as distinct. We tak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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