2009 (10) TMI 224 - AT - Service Tax

Free after sale service- whether service tax is leviable on free after sale service ? In the light of the various decisions in which held that it is only a presumption of the department that the dealer s margin was inclusive of the cost of free after-sales service rendered during the warranty period and set aside the demand of service tax confirmed on such basis held that- uphold the impugned order and set aside the demand and penalty and reject the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled that service tax is not leviable on 'free after-sales service' included in the dealer's margin. Previous Tribunal decisions supported this stance, leading to the dismissal of the appeal and rejection of the service tax demand and penalty.