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TMI Blog2012 (8) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... e included in the assessable value of the vehicle. 2.2 Appeal No.E/1742/10 has been filed by the assessee M/s. Mahindra & Mahindra for dis-allowing the input service credit on after sales service charges paid by the dealer which claimed by the assessee that they have included the same in the assessable value. 2.3 Therefore, from the both the appeals the issue arises that whether the assessee is entitled to avail input service credit on after sales service charge paid by the dealer which are included in the assessable value or not. 2.4 As the issue involved is common in both the appeals, therefore both the appeals are disposed of by a common order. 3. Shri. Bharat Raichandani, learned Advocate appearing for the appellant submitted that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned A.R. further submitted that this is not a sale promotion of the goods as every manufacturer in the industry is giving offer to the customers to sell the vehicle. Therefore, it is a general offer given to the customer which does not amount to sale promotion. Therefore, the assessee's appeal be dismissed and the Revenue's appeal be allowed. 5. Considered the submissions made by both sides in detail. 5.1 The first issue by the learned A.R. is that after sales service of the vehicle is not an 'input service' on the ground that the service has been availed after sale of the vehicle and expenses incurred towards manufacture of the vehicle are entitled for input service credit. We have gone through the Section 4(3) of the Central Excise Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CCE vs. Danke Products (supra) wherein the facts of the case are that the appellants were engaged in the manufacture of electrical transformers and those were cleared on payment of duty. As per the terms of contract, the assessee was under obligation to repair and maintain the transformers during the warranty period free of charge. Those job of repair and maintenance was entrusted to 3 rd person who raised bills for repair and maintenance on assessee in turn the assessee took input service credit. The issue was dealt with by the Tribunal. In that case wherein the Tribunal has observed as under:- "The dispute in the present appeal is as to whether such availment of service tax paid by DEL is correct or not. Commissioner (Appeals) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing through the Appellants is not relevant for determining as to who was the actual receiver of the services in this case. The movement of transformer from GEB to the repairer and back to GEB was an arrangement for convenience between the Appellants and M/s. Danke Electricals and M/s. GEB to avoid unnecessary movement of the transformers. The fact remains that in these cases, the repairer has no direct relation/ agreement with GEB in respect of the said repairs etc and these repairs were undertaken by the repairer at the instance of the Appellants (who are also the manufacturers of the goods) and on their behalf and were paid for by the Appellants. In view of the above reasons as well as the fact that the repairs during warranty period are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the respondents. As such, I find no reason to take a view different than one taken by the Commissioner (Appeals). 6. Apart from the above, the appellate authority has viewed the problem from angle, when he observed as under : "4.5 Assuming, though not admitting, for the sake of argument that the services have been provided by M/s. Danke Electricals to M/s. GEB on behalf of the appellants, then the service would be appropriately classifiable as "Business Auxiliary Service" covered under clause (iii) [any customer care service provided by a third party on behalf of another person] and/or under clause (vi) [any service provided by a third party on behalf of another person] of Section 65(19) of the Finance Act, 1944. Keeping in view th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of these observations, we hold that if after sale service expenses are included in the assessable value, the assessee is entitled for input service credit on the expenses incurred on after sales charges. Therefore, the appeal filed by the Revenue is dismissed and the appeal filed by the assessee is remanded to the adjudicating authority for verification whether after sales service charges are included in the assessable value or not as the assessee did not produce the Chartered Accountant's certificate before the adjudicating authority. Therefore, the adjudicating authority shall consider the certificate issued by the Chartered Accountant/Cost Accountant and thereafter pass an appropriate order after giving a reasonable opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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