2014 (1) TMI 617

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..... applicant, who is an authorized agent of M/s. Toyota Kirloskar Motor Ltd. (TKML, for short), sells vehicles manufactured by TKML and also provides service for the vehicles both during the warranty period and after the warranty period. The dispute involved in this case is about 'free service' provided during the warranty period. The service is free to the purchaser of the vehicle. It is provided b .....

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..... or applicant submits that Revenue has demanded service tax considering the value of components 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. Ltd. Vs UOI - 2013 (29) STR 9 (Del.). Further, he points out that the Tribunal in the case o .....

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..... s 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 beneficiary because such services enhances his brand value and the reputation of .....

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