TMI Blog2024 (3) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... ranty was part of the contract of sale, the Cenvat credit of the service tax paid on the servicing of vehicles by the dealers should not be disallowed in the hands of the appellant. In the case of M/S. LUCAS TVS LTD. VERSUS COMMISSIONER OF GST CENTRAL EXCISE, CHENNAI NORTH [ 2019 (9) TMI 1131 - CESTAT CHENNAI] , it was observed that the warranty service is eligible for credit though the same is provided after the clearance of the final products. The demand cannot sustain and requires to be set aside. The impugned orders are set aside - Appeal allowed. - HON BLE MS. SULEKHA BEEVI. C. S. , MEMBER ( JUDICIAL ) And HON BLE MR. VASA SESHAGIRI RAO , MEMBER ( TECHNICAL ) Mr. M. Saravanan , Consultant Mr. J. Shankarraman , Advocate For the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbursed to the dealers. Further, the appellant has included such charges in the assessable value while discharging Excise Duty on the final products. Being the manufacturer of goods, the appellant offers warranty of goods and so has to provide warranty services, though the same is provided through the dealers. It is submitted that for the subsequent period October 2013 to October 2014, November 2014 to January 2015 the Tribunal in the appellant s own case as reported in 2017 (51) STR 457 (Tri.-Chennai) as well as Final Order No.42559/2016 dt. 30.12.2016 has held the issue in favour of the appellant. He prayed that the appeals may be allowed. 3. The Ld. A.R Sri M. Selvakumar appeared for the Department. The findings in the impugned order wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect as to whether cost of the warranty forms part of the assessable value. Therefore, there is no material difference between the earlier decided case by final order referred above and the present case. Accordingly, when cost of warranty was part of the contract of sale, the Cenvat credit of the service tax paid on the servicing of vehicles by the dealers should not be disallowed in the hands of the appellant. Consequently, the appeal is allowed. 6. In the case of Lucas TVS Ltd. Vs CGST Central Excise, Chennai - 2020 (37) G.S.T.L. 180 (Tri.-Chennai), it was observed that the warranty service is eligible for credit though the same is provided after the clearance of the final products. The relevant paragraph of the decision is noticed as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntenance service during warranty period on behalf of the appellant to the customers. The sale price of the air conditioners sold by the appellant to their consumers during the period of dispute included the warranty charges. There is no dispute that Central Excise duty had been paid on the value which included the warranty charges. During the warranty period, the appellant were under obligation to provide free repair and maintenance services to the consumers, who had purchased the air conditioners from them. However, instead of providing the free repair and maintenance service directly in discharge of their obligation, the appellant roped in the dealers who provided free repair and maintenance to the consumers on their behalf and the dealer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
