2008 (1) TMI 68 - AT - Service Tax

Maintenance and repair service - the contract is for routine/break down and capital maintenance of H.T. Motors and routine and break down maintenance - the contract is not only for repair, it is a maintenance contract and as per Finance Act, Maintenance or Repair Service means any service provided by a person under a maintenance contract or agreement or repair in respect of maintenance or repair - as service provided under a contract, which is a maintenance contract, so demand is justified

Summary

The Appellate Tribunal CESTAT, New Delhi allowed the appeal filed by the respondent against the demand of Service Tax for maintenance and repair services. The Tribunal found that the contract in question was a maintenance contract, not just a repair contract, based on the terms of the contract provided by the respondent. Therefore, the demand was set aside, and the order of the Adjudicating Authority was restored.