TMI Blog2023 (5) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... le services provided or to be provided and shall be included in the value for the purpose of charging service tax on the said notification . This Rule was under consideration before the Hon ble Supreme Court in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [ 2018 (3) TMI 357 - SUPREME COURT] and it was held that reimbursable expenses cannot be included in the taxable value. The period involved is prior to the amendment of Section 67 of the Finance Act, 1994. The very same issue as to whether the cost of spares and material used for free services during warranty period has to be included in the taxable value or not was considered by the Tribunal in the case of ABT LTD. VERSUS CCE, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed penalty under Section 78 of the Finance Act, 1944. Aggrieved by such order the appellant preferred an appeal before the Commissioner (Appeals) who vide order impugned herein, upheld the order passed by the adjudicating authority. Hence the appellant is now before the Tribunal. 2. The learned counsel Shri N. Viswanathan appeared and argued on behalf of the appellant. The appellant being an authorized dealer for the sale of Tata motor cars was also undertaking servicing of Tata Motor cars. As per the arrangement with the manufacturer, namely, TATA Motors, they are obliged to provide three free services during the warranty period for the cars sold by them. The cost of said free services provided during the warranty period was not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od vide Final Order No.40394-394/2019. The Tribunal in the said decision had followed the decision of the Tribunal in the case of M/s. ABT Ltd. and others Vs. Commissioner of Central Excise, Coimbatore decided vide Final Order No.40618-40628/2018 dated 14.03.2018. 4. The learned counsel argued on the ground of limitation also. It is submitted that the period involved is from October 2004 to September 2009 and the show cause notice has been issued only on 19.04.2010 invoking the extended period. Apart from a bald allegation that the appellant has suppressed facts with intent to evade payment of tax there is no evidence produced by the Department to establish that the appellant has suppressed facts. The appellant being an authorized dealer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be included in the taxable value or not was considered by the Tribunal in the case of M/s. ABT Ltd. and others Vs. Commissioner of Central Excise, Coimbatore vide Final Order No.40618-40628/2018 decided on 14.03.2018. The relevant paragraphs are produced as under: 2. M/s. Sree Saradhambal Automobiles Pvt. Ltd. as well as M/s. ABT Ltd. are the authorized dealers for M/s. Maruti Suzuki India Ltd. M/s. Chandra Automobiles India P. Ltd. is the dealer for M/s. Hyundai Motor India Pvt. Ltd. These authorized dealers carry out the work of authorized service station on behalf of the manufacturers during the warranty period. In those cases, where the buyers of the vehicles have opted for extended warranty, such services are also rendered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts for payment of service tax. In addition, he submitted that the extended warranty premium recovered by the authorized dealers have been remitted to the manufacturers of motor vehicles and on such premium, the manufacturers of motor vehicles have paid appropriate service tax. The Revenue is not justified in considering such amounts as reimbursement of cost of spares. 4. The Ld. AR justified the impugned orders. He submitted that the manufacturers of motor vehicles have reimbursed the cost of rendering warranty as well as extended warranty service on which service tax is liable to be paid by the authorized dealers. 5. After considering the submissions made by both sides as well as perusal of records, we find that the service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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