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TMI Blog2018 (6) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... is providing three free service to the customers who purchase new motor cars from the authorized dealers. As per clause 4.4 of the agreement entered into between M/s. HMIL and the appellant, the latter is not permitted to charge customers for any services for which dealer is reimbursed by M/s. HMIL for repairs covered under the warranty and other free services. The dealer's profit offered by M/s. HMIL is inclusive of all the above payments. The period involved in these two appeals is from May 2003 to March 2004. The Revenue felt that the charges for these free services during the warranty period are reimbursed by the manufacturer. Accordingly, a show-cause notice was issued alleging that the reimbursement received by the authorized service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce has been issued on the basis of Clause 4.4 of the dealership agreement. As rightly pointed out by the learned advocate, the said clause does not pertain to free service done under warranty services. For the sake of convenience, the said clause is reproduced below: "4.4 Disclosure as to prices of Hyundai Products DEALER agrees to explain to customers of Hyundai Products the items, which make up the Maximum Selling Price fixed and intimated by HMI from time to time and give such customers itemized invoices and any other information required by law. DEARLER further agrees that it will not make any misleading statements or suppress material facts as to the items which make up the Maximum Selling Price of any Hyundai Products or as to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of liability to service tax for free services provided to car purchasers by the authorised dealers is already settled in favour of the assessee by this Tribunal in the case of Jabalpur Motors Ltd. (supra) wherein this Tribunal held as below: 4. We have considered the facts of the case. Authorised Service station is defined as under : " 'authorised service station‟ means any service station, or centre, authorised by any motor vehicle manufacturer, to carry out any service, repair, reconditioning or restoration of any motor car, light motor vehicle or two wheeled motor vehicle manufactured by such manufacturer", and the related taxable service is defined as "a service rendered to a customer, by an authorised service station, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L). Accordingly this amount cannot be made liable to service tax under the category of authorised service station service. 6. In the light of the foregoing, we find that the appeal filed by the Revenue is not sustainable and is therefore dismissed." 6.4 The issue is also covered by the decision of this Tribunal in the case of CCE, Nashik vs. Automotive Manufacturers Ltd. (supra); ASL Motors Pvt. Ltd. vs. CCE & ST, Patna: 2008 (9) STR 356 (Tri.-Kolkata) and Indus Motor Company vs. CCE, Cochin: 2009 (9) STR 18 (Tri.-Bang.). 6.5 We also find that in the case of ASL Motors Pvt. Ltd. (supra), this Tribunal took the following view in favour of the assessee:- "4. We find that the Ministry in its Circular No. 28/2006-Cus. (sic) (Circular No. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales service. In our view, the entire amount including the dealers' margin has been rightly taxed to sales tax representing the value of the cars. The provision of free servicing is merely incidental and intended to promote the sale of the cars. Hence, we are of the view that no service tax can be levied on the amount representing the dealers' margin or any part of it which already has been subjected to sales tax. Consequently, we set aside the impugned order and allow the appeal." 6.6 By following the ratio of the above judgments, we hold that the order of the Commissioner (A) is not sustainable and the same is set aside. 7. In the result, the appeals filed by the appellants are allowed. (Operative portion of the Order was pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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