2013 (12) TMI 911

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r vehicles cannot form part of value of service on which service tax has been paid. One such case is already cited by the applicant - "Free Warranty Service" the service is free to the customer but is billed to the manufacturer of the motor vehicle. So also the spare parts replaced is free to the customer but billed to the manufacturer. The applicant's submission that this fact is proved from debi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... period from the manufacturer. The applicant is raising the service charges separately to M/s. TVS Motor Co. Ltd., and pays service tax only on the labour portion. They did not pay service tax on the cost of spare parts reimbursed to them by TVS Motor Co. Ltd. Revenue was of the view that service tax should have been paid on the value inclusive of value of spare parts used in servicing. Based on su .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . Ltd. So, this was not the case of sale of spare parts. According to him, exemption under Notification No.12/2003-ST can be claimed only in cases involving sale of goods in the course of providing service. According to him, since no sale is demonstrated through documents the value of spare parts cannot be separated from the value of service provided. 3. Considered the arguments from both sides. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X