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2009 (4) TMI 118 - AT - Service TaxFree Services – Warranty Period – Motor Vehicle – after sale service - Department has contended that the appellant is liable to pay service tax on the amount attributable to the free services provided by the dealer during the warranty period – As far as the buyer is concerned he is entitled to 3 free services. - the contract between the purchaser of the vehicle and the dealer is an indivisible contract. – Held that no Service Tax is leviable - As regards reimbursement of cost of free services rendered by another dealer, in such cases the services provided would have been to the dealer who sold the vehicle by the dealer who has actually provided the services and therefore the service tax is leviable. In that case the receiver of services would not be the purchaser but the dealer who has originally sold the vehicle. Therefore the fact that the dealer gets reimbursement when he provides service in respect of the vehicles sold by others would not help the Revenue. – Demand and penalties set aside.
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