2015 (11) TMI 1627 - HC - VAT and Sales Tax

Taxability - The supply of spare parts to the customer during the warranty period without charging any consideration is sale transaction or not and is liable to tax or not? - Held that - in supply of spare parts to the customer by the dealer during the period of warranty free of charge no sale consideration passes from the customer to the dealer and therefore the cost of the spare parts can not be included in the turnover of the sale of the dealer - revision dismissed - decided against revisionist.

Summary

The Allahabad High Court allowed the delay condonation application and dismissed the revision. The court held that supplying spare parts to customers during the warranty period without charging any consideration is not taxable as a sale.