TMI Blog2013 (12) TMI 1434X X X X Extracts X X X X X X X X Extracts X X X X ..... to in this industry as free service. This is not free service at all. This is rendered at a cost both for the services and for the parts which are paid by the manufacturer to the appellant. However, the owner of vehicle is one of the beneficiaries of the activity. The vehicle manufacturer is also a beneficiary because such services enhances his brand value and the reputation of his goods and cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. (MUL), sells the vehicles manufactured by them and also provides service both during the warranty period and after the warranty period. The dispute involved in these cases is about free service provided during the warranty period. The service is free to the purchaser of the vehicle. It is provided because manufacturer is paying to the applicant, both cost of the service as well as cost of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is also a penalty of Rs.5000/- imposed under Section 77 in the first appeal. 2. The counsel for applicant submits that Revenue has demanded service tax considering the value of parts as reimbursable expenses as per Rule 5 of the Service Tax Valuation Rules and contend that this rule has been struck down by Hon ble Delhi High Court in the case of Intercontinental Consultants Technocrats Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The entire dispute arises out of the fact that this service being provided is commonly referred to in this industry as free service. This is not free service at all. This is rendered at a cost both for the services and for the parts which are paid by the manufacturer to the appellant. However, the owner of vehicle is one of the beneficiaries of the activity. The vehicle manufacturer is also a be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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