TMI Blog2023 (10) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... rs were set aside and the appeals filed by the appellant were allowed, where the Tribunal held t he free services are rendered to the car buyers and not to M/s. MUL and the car buyers pay nothing therefor. Seen in this light it is evident that the demand of service tax as per column 5 of the table above is misconceived. There are no reason not to follow the said judgment of this Tribunal delivered for the earlier period. Consequently, following the said judgment, the present appeal is also allowed. - HON'BLE Dr. D.M. MISRA, MEMBER (JUDICIAL) And HON'BLE Mr. PULLELA NAGESWARA RAO, MEMBER (TECHNICAL) None for the appellant Mr. Neeraj Kumar, Superintendent(AR) for the respondent ORDER Per : DR. D. M. MISRA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003 to March 2004 and April 2006 to March 2007 in appeal No.ST/582/2008 and ST/583/2008, similar issue was considered by this Tribunal and following the ratio laid down in the case of CCE, Indore Vs. Jabalpur Motors Ltd. [2014(36) STR 1160 (Tri. Del.)], the impugned orders were set aside and the appeals filed by the appellant were allowed, where the Tribunal held as under: 6.1 We also find that the free services are covered under clause 7.3(b) of the dealership agreement, which is reproduced below: 7.3 Reimbursement Rates (b) DEALER shall provide policy free services for all Hyundai Products covered under such scope regardless of whether the Hyundai Products have been purchased from them or any other Hyundai dealer. In case the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch manufacturer , and the related taxable service is defined as a service rendered to a customer, by an authorised service station, in relation to any service, repair, reconditioning or restoration of motor cars, light motor vehicles or two wheeled motor vehicles in any manner. 5. It is evident from the above definition that the liability to service tax is on account of the said service provided to a customer. The service is provided to the car buyers who are the customers. For the free services, no amount is charged from the customers. As regards the contention that amount towards the free services is reimbursed by Maruti Udyog Ltd., it is seen that Maruti Udyog Ltd. have categorically stated that they do not reimburse any amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), 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. 87/05/2006-S.T.), dated 6-11-06 has clarified that where service charges are reimbursed by the vehicle manufacturers, such reimbursement should be subjected to service tax. However, it is well-known that free servicing is normally provided by the dealers in the vehicle trade meeting the expenses from the dealers margin, yet the Ministry has chosen to keep silent regarding taxability of such free servicing provided by the dealers for which no reimbursements are made by the vehicle manufacturers. It appears to us that such silence about the dominant practice of providing free servicing h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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