TMI Blog2004 (9) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... estion involved in these revisions is whether the service charges charged by the dealer/opposite party (hereinafter referred to as Dealer ) from the customers for rendering the services towards manufacture and repairs of refrigerators for the period of four years, after expiry of the warranty period for one year will be part of the turn over. Brief facts of the case are that the dealer was engaged in the business of sales of refrigerators. Under the optional scheme, dealer charged service charges from its customers separately, for the maintenance and the repairs of the refrigerators sold by it for the period of four years after the expiry of warrant period of one year. It was claimed, as not part of the turn over, being charged after sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Commercial Taxes Officer Vs. Kelvinator India, reported in 90 STC, 336, and the decision of Rajasthan High Court in the case of Commercial Taxes Officer Vs. Weston Electroniks Ltd., reported in 87 STC, 522. He also relied upon the latest decision of this Court in the case of CST Vs. S/S Kelvinator of India Ltd., reported in 2004 (40) STR, 680. I have gone through the order of the Tribunal and the authorities below. Tribunal has recorded a categorical finding that the dealer had charged service charges for the maintenance and the repairs of the refrigerators for the period of four years after the expiry of the warrant period for one year under the optional scheme. This is a finding of fact. This finding of fact has not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arged for anything done by the dealer in respect of the goods sold at the time of or before delivery. The amount charged for the services to be done after the delivery and sales for the period of four years after the expiry of warrant period of one year. In the case of Collector, Central Excise, Delhi Vs. M/s Kelvinator of India Limited, reported in 1988 UPTC, 780, Apex Court held that contract for four years warranty service was optional, which was entered into later on. This is clearly after sale facility and cannot be includible in the assessable value of the refrigerators. In the case of State of Andhra Pradesh Vs. Hyderabad Allwyn Ltd., reported in 78 STC, 56 in the case of assessee itself, Andhra Pradesh High Court held as follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dependent upon taking four-year warranty. The Tribunal was, therefore, right in saying that the warranty charges relating to four-year warranty are not includible in the turnover. The aforesaid view of the Andhra Pradesh High Court has been followed by the Rajasthan High Court in the case of Commercial Taxes Officer Vs. Kelvinator India, reported in 90 STC, 336, and in the case of Commercial Taxes Officer Vs. Weston Electroniks Ltd., reported in 87 STC, 522. In the case of CST Vs. S/S Kelvinator of India Ltd., reported in 2004 (40) STR, 680. Learned Single Judge of this Court following the decision of Rajasthan High Court in the case of Commercial Taxes Officer Vs. Kelvinator India, reported in 90 STC, 336, and in the case of Commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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