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2018 (7) TMI 268 - AT - Service TaxTaxability - Maintenance and repair service during the warranty period - CBEC Circular No.59/8/2003 dated 20.06.2003 - Held that - As per the definition of maintenance and repair service, for the relevant period, the maintenance and repair carried out as per the agreement is covered. The definition also covers the cases where a person authorized by manufacturer carries out maintenance and repair service - The service rendered by the appellant during the warranty period is on behalf of the manufacturer who has authorized the appellant. Hence appellant will be covered by the second limb of the definition - demand upheld - appeal dismissed - decided against appellant.
Issues:
Interpretation of maintenance and repair service under Section 65(64) of Finance Act, 1994 for service tax liability during the warranty period. Analysis: The appellant, an authorized service agent for a manufacturer, provided service for air conditioners during and after the warranty period. The dispute arose when the department demanded service tax under maintenance and repair service for services rendered during the warranty period. The appellant argued that there was no maintenance agreement with the manufacturer, thus no service tax liability. The department relied on a CBEC Circular clarifying that service tax is applicable even if the service provider is different from the payment recipient. The Tribunal analyzed the definition of maintenance and repair service and found that services rendered by the appellant during the warranty period were on behalf of the manufacturer who authorized the appellant, falling under the definition. The Tribunal also noted that the CBEC Circular supported the levy of service tax in such cases, and the case laws cited by the appellant were distinguishable as services were not rendered as authorized persons. In conclusion, the Tribunal upheld the impugned order, dismissing the appeal as they found no reason to interfere. The decision was based on the interpretation of maintenance and repair service under the relevant provisions of the Finance Act, 1994, and the applicability of service tax during the warranty period for services provided by an authorized service agent on behalf of the manufacturer.
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