TMI Blog2011 (10) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... : Shri Rajesh Chhibber, Advocate PER: ARCHANA WADHWA Being aggrieved with the impugned order passed by the Commissioner (Appeals), the Revenue has filed the present appeal. We have heard Rajendra Gupta, learned SDR and Shri Rajesh Chhibber, learned Advocate appearing for the respondents. 2. As per facts on records, the respondents are authorised Maruti dealer engaged in selling the vehicles of Maruti Suzuki India Ltd. and are their Authorized Service Station. They are also engaged in providing after sale service to the customers. 3. The dispute in the present appeal of Revenue is as to whether the respondents as authorized service station provided free after sale service are liable to pay service tax on the said service or not. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as per the norms fixed by Maruti Udyog Ltd., the appellants have contested on the ground that these are part of the sale value of car and for the service provided. The plea made appears to be correct in view of the fact that when free services are provided by the dealer who is also authorized service station, no reimbursement is made to the dealer. In case when free service is provided by the other authorized service station, then seller pays to the other authorized service provider a nominal amount of its sales margin as fixed by Maruti Udyog Ltd. The said mechanism has been floated by the Maruti Udyog Ltd. to have a uniform policy among the dealers keeping the customers to have a facility to get such free services at any of the neare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice and there is no provision for refund or rebate in case such free services are not availed by the buyer. As far as the purchaser of the vehicles are concerned, it is indivisible contract and the component of free services cannot be segregated. It was observed that if the contract can be segregated, the purchaser would have been able to get services from any dealer he wanted and not necessarily from the dealer of Maruti Udyog Ltd only and could claim rebate in respect of free services which was availed by the dealer of Maruti Udyog Ltd. Similarly, the services provided by the dealer, who had not actually sold the vehicle, cannot be held liable to service tax, even if the cost of free sale service stands reimbursed by another dealer who h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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