9911796707
TMI BlogNo Service Tax leviable on Cost of Spares and accessories used for free services during warranty periodX X X X Extracts X X X X X X X X Extracts X X X X ..... No Service Tax leviable on Cost of Spares and accessories used for free services during warranty period X X X X Extracts X X X X X X X X Extracts X X X X ..... the free services provided during the warranty period. Held that, assessee is not liable to pay Service Tax on the cost of spares and accessories reimbursed by the manufacturer. Facts: M/s. T.A.F.E Access Ltd ("the Appellant") an authorized dealers of M/s. Tata Motors ("the Manufacturer") is engaged in selling of cars and providing free service during the warranty period for the cars sold by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. The expenses for providing free service were reimbursed by manufacturer. The Appellant was paying service tax on the labour charges but was not discharging service tax on cost of spares which was reimbursed by Manufacturer. The Assessing Authority vide a Show Cause Notice ("the SCN") raised the demand to pay service tax on the reimbursement received from the manufacturer towards the supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parts and accessories during the free warranty and services. The Appellant filed the reply to the SCN and after considering the reply the Adjudicating Authority confirmed the demand. Aggrieved by the demand, the Appellant filed an appeal before the Commissioner (Appeal) who vide Order-in-Appeal No. CMB-CEX APP 101/12 dated May 21, 2012 ("the Impugned Order") upheld the order passed by the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicating authority. Being aggrieved, this appeal has been filed. Issue: Whether the cost of spares and accessories reimbursed by the manufacturer on account of free services provided during the warranty period is leviable to service tax? Held: The CESTAT Chennai M/S. T.A.F.E ACCESS LTD. VERSUS COMMISSIONER OF GST & CENTRAL EXCISE, COIMBATORE - 2023 (5) TMI 1154 - CESTAT CHENNAI held as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r: * Relied upon the judgment of the Hon'ble Supreme Court in UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. - 2018 (3) TMI 357 - SUPREME COURT wherein, the court had held that reimbursable expenses cannot be included in the taxable value. * Observed that, in the Appellant's own case the very same issue was decided for the subsequent periods in M/S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAFE ACCESS LTD. VERSUS COMMISSIONER OF GST & CENTRAL EXCISE, COIMBATORE - 2019 (2) TMI 2081 - CESTAT CHENNAI * Noted that, same issue as to whether the cost of spares and material used for free services during warranty period has to be included in the taxable value or not, was considered by the CESTAT, Chennai in ABT LTD. VERSUS CCE, COIMBATORE, CHANDRA AUTOMOBILE INDIA PVT. LTD. AND SREE SARAD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HAMBAL AUTOMOBILES P. LTD. - 2018 (5) TMI 716 - CESTAT CHENNAI wherein, it was held that cost of spares and accessories used in replacement during warranty period were sold on payment of VAT thus, the cost of spare parts cannot be included for purposes of levy of service tax. * Held that, the Appellant is not liable to pay service tax on the cost of spares reimbursed by the manufacturer. * Set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the Impugned Order.
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