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2018 (7) TMI 514 - HC - VAT and Sales TaxWhether the Tribunal was justified in holding that the credit in the “Dealers Spare Part Account” received by the Petitioner from Maruti Udyog Ltd. amunting to ₹ 30,52,192/ can be treated as actual Sale price received by the Appellant for replacement of spares during the manufacturer's warranty scheme and therefore liable to Tax under the provisions of the MVAT Act? Held that:- The manner of using the credit does not detract from the fact that the amounts credited to the account of the Appellant by M/s. Maruti Limited is on account of sale of parts as replaced during the warranty period - the decision in the case of Chowgule Industries Pvt. Ltd. v. State of Maharashtra [2018 (4) TMI 939 - BOMBAY HIGH COURT] do not apply to the facts of present case, the assessee therein was replacing parts during the warranty period of Maruti vehicles sold. The cost of the parts was reimbursed by M/s. Maruti Limited. It was the aforesaid amount that was brought to tax. In this case the distinction is that though during the warranty period, the parts of Maruti vehicle were replaced by it, M/s. Maruti Limited do not reimburse the same in cash but credit it the Appellant's account in its books. Appeal dismissed - decided against appellant.
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