2014 (8) TMI 266 - AT - Service Tax

Waiver of pre deposit - Authorised Service Station and Repairs Service - reimbursement received in the course of rendering service - Held that - There are Credit Notes issue by M/s. Tata Motors for cost of the goods and the contents of such Credit Notes are not disputed. That being the case, prima facie, the applicant is eligible for exemption under Notification No.12/2003-ST and, therefore, we grant waiver of pre-deposit of dues arising from the impugned order for the purpose of admission of the appeal and there shall be stay on collection of such dues during the pendency of the appeal - Following decision of assessee s own previous case 2014 (1) TMI 455 - CESTAT CHENNAI - Stay granted.

Summary

Issues:
1. Tax liability on reimbursement received in the course of rendering services.
2. Interpretation of Notification No. 12/2013-ST regarding exemption for value of goods sold while providing services.

Analysis:
1. The judgment dealt with the tax liability of the appellant, a provider of taxable services, for the period 01.04.2010 to 31.03.2011. The demand of tax, interest, and penalty was based on the contention that the appellant had not paid tax on the reimbursement received during service provision. The Tribunal noted that in the appellant's earlier case, unconditional stay was granted by the Tribunal, indicating a precedent in favor of the appellant.

2. The Tribunal examined Notification No. 12/2013-ST, dated 20.06.2003, which provides exemption for the value of goods sold while offering services. The Authorized Representative for the Revenue argued that the gross value received included the cost of spare parts, even though it was separately detailed in Credit Notes, and no documentary evidence was presented by the appellant to claim exemption. However, the Tribunal considered the Credit Notes issued by M/s. Tata Motors for the cost of goods, which were undisputed, leading to a prima facie conclusion that the appellant was eligible for exemption under the said Notification.

3. Consequently, the Tribunal decided to waive the pre-deposit of tax, interest, and penalty until the appeal's disposal, aligning with the earlier decision in the appellant's favor. The Registry was instructed to link the current appeal with previous appeals for coherence. The stay application was allowed, providing relief to the appellant pending the appeal's resolution. The judgment was dictated and pronounced in an open court session.