9911796707
TMI Blog2008 (12) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... s are engaged in the sale and service of motor vehicles, computers and spares and are holding Service Tax Registration under the category of 'Servicing of Motor Vehicles', 'Technical Testing and Analysis' and 'Business Auxiliary Service'. They have authorized service station for servicing the vehicles of 'TATA Motors' at Edappally. The appellants were providing three free services to the buyers of new vehicles from M/s. TATA Motors. The costs of free services were recovered from M/s. TATA Motors. Investigations revealed that the appellants had received Rs. 24,08,727/- as cost of such free services in respect of 'Light Commercial Vehicles'. As it appeared that the appellants violated the provisions of Section 68 and 70 of Finance Act, 1994 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are not included in the definition of Light Motor Vehicles (LMVs) as per Section 65 (62) of the Act and when the service has been excluded by the legislation from the category of service to which it specifically belongs to, it cannot be brought to tax under another category of service which is general in nature; that in respect of 'Business Auxiliary Service' taxable service means any service provided to a client and customers who avail the free service cannot be considered as clients and hence, the basic condition for subjecting the amount to tax is not satisfied; that the services rendered by the appellant to the customers during the warranty period cannot be considered as a customer care service on behalf of M/s. TATA Motors Ltd., as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to the cost of free services in respect of 'light commercial vehicles'. The case is regarding the applicability of Service Tax on the activity of servicing/repairing of the commercial vehicles. We find that Central Board of Excise & Customs vide Circular No. 87/05/2006-ST dated 6.11.2006 [reported in 2006 (77) RLT 14] clarified as under. 5. As regards the applicability of service tax on the activity of servicing/repairing of the commercial vehicles, it is clarified that as regards 'authorised service stations', the taxable service, means any service provided or to be provided, to a customer, by an authorized service station, in relation to any service, repair, reconditioning or restoration of motor cars, light motor vehicles or two wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorized service station to a customer in relation to service, repair, reconditioning or restoration of motor cars, light motor vehicles or two-wheeled motor vehicles [Section 65 (105) (zo)]. Thus, servicing of heavy vehicles like trucks, not being one of the specified categories of motor vehicles, is at present not covered within the scope of the said taxable service. It can be noticed that even the recent circular also categorically states of Service Tax liability is only on the 'light motor vehicles' and two-wheeler motor vehicles. 5.3 Since the earlier Circular dated 6.11.2006 has very clearly extracted the provisions of Motor Vehicles Act to exclude transport vehicles from the category of motor cars, we are of the considered opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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