TMI Blog2019 (3) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... em. In the absence of any consideration service tax cannot be charged obviously service tax cannot be charged on the value of the spare parts used for such repair or maintenance. It is not the department’s case that the Appellants have not discharged applicable Central Excise duty on the spare parts used by the Appellant in discharge of the service. The department has not produced any evidence to the effect that the Appellants have received remuneration for such repair or maintenance service in the absence of the same no service tax is payable by the Appellants in the result no demands survive - appeal allowed - decided in favor of appellant. - APPEAL NO: ST/85937, 85938/2015 & ST/85887, 85888/2018 - A/85448-85451/2019 - Dated:- 11-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is recovered. However, excise duty is paid on the parts used in the repairs. In case the goods are returned beyond the guarantee/ warranty period when the refurbishing is done on chargeable basis. The charges are only for the cost of the replaced/ damaged parts. In such cases also no service charge is recovered therefore the services always free for the customers. The Appellant further submitted that the case was made out after a visit of the audit party. The general Manager in his statement has clearly stated that the service rendered is free of cost. 2.1 The appellant also submitted that service tax is leviable only on the service i.e. rendered for some consideration. If the service is rendered free of charge then there is no service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of Central excise on the spares/ parts used in repair and refurbishing on going through sample invoices it appears that the contention of the Appellant is correct. Though the service is rendered no remuneration for such repair and maintenance service is charged/ received by the Appellants. In the absence of consideration for the service rendered it cannot be argued that the Appellants are liable to pay service tax on such services provided by them. Arguably, service tax payment is necessary when the four things are satisfied; (i) There is a service (ii) There is a service provider (iii) There is a service recipient (iv) There is a consideration for such service paid by the recipient of service to the provider of the service. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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