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TMI Blog2013 (12) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... tained by them for the services provided namely canvassing of business of extended warranty. Therefore, we waive the requirement of predeposit of dues arising out of impugned order for admission of appeal - Stay granted. - ST/683/11 - MISC ORDER No.42694/2013 - Dated:- 13-11-2013 - Shri Pradip Kumar Das and Shri Mathew John, JJ. For the Appellant : Shri M.N. Bharathi, Advocate For the Respondent : Shri M. Rammohan Rao, DC (AR) ORDER Per Mathew John 1. Applicant is the dealer of vehicles manufactured by M/s. Maruti Suzuki Ltd. They provided free service during the warranty period for which they were reimbursed for cost of services and for cost of materials. On cost of services, they paid service tax. On cost of material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vassing business for free warranty service provided by Maruti Suzuki Ltd. and they get commission for canvassing such business. For such commission, they paid service tax under the category of Business Auxiliary Service. He submits that since the consideration for providing extended warranty though received in their hand was not a consideration for the services provided by them, there cannot be any demand of service tax on such amount. He also points out that quite often the actual service under such agreement may be provided by another Authorized Service Station because all dealers and Authorized Service Stations are carrying out service under Extended warranty scheme as agents of Maruti Suzuki Ltd. which reimburse the expenses incurred by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mary warranty at the time of purchase of extended warranty. 6. His argument is that this is a service provided by the dealer and the entire consideration is received by the applicant and since consideration is received, tax should be paid and the consideration is not part of sale of vehicles. 7. Considered the arguments on both sides. On the first issue, we would like to go by the stay order already passed by this Bench. In the case of second issue, we are prima facie of the view based on the information booklet for Extended Warranty that such service is provided by Maruti Suzuki Ltd. only and consideration for such services if taxable is to be taxed in the hands of Maruti Suzuki Ltd. and not in the hands of the person who canvasses the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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