TMI Blog2015 (1) TMI 1140X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices to the dealers. The respondents have also stated that providing such free services is part of the functions and duties of dealers who are entitled to the dealership commission. Also the free services are rendered to the car buyers and not to M/s. MUL and the car buyers pay nothing therefor. Seen in this light it is evident that the demand of service tax as per column 5 of the table above is misconceived. Coming to the demand of service tax on the amount received on account of salary of drivers of vans used for providing mobile service to the car owners shown in column 4 of the table, it is evident that the customer in this case is the car owner who is the recipient of service. M/s. MUL receive no service nor are M/s. MUL, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V(ST)3-35/ASS/06-07/ 20452, dated 13-7-2006 12640/- 24457/- 17814/- 2. V(ST)3-44/ASS/06-07/ 22299, dated 7-9-2006 - 14627/- 12103/- 3. V(ST)3-57/ASS/07-08/ 5847, dated 21-9-207 - 16646/- 112896/- Vide the above referred Order-in-Appeal the Order-in-Original was set aside against which the Revenue is in appeal only in respect of the demands confirmed as per columns 4 5 of the table above. 2. Briefly stated, the demand in column 4 is in respect of the amount of salary of drivers of mobile vans used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer , and the related taxable service is defined as a service rendered to a customer, by an authorised service station, in relation to any service, repair, reconditioning or restoration of motor cars, light motor vehicles or two wheeled motor vehicles in any manner. 5. It is evident from the above definition that the liability to service tax is on account of the said service provided to a customer. The service is provided to the car buyers who are the customers. For the free services, no amount is charged from the customers. As regards the contention that amount towards the free services is reimbursed by Maruti Udyog Ltd., it is seen that Maruti Udyog Ltd. have categorically stated that they do not reimburse any amount towards suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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