2014 (1) TMI 45

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ul, Superintendent (AR) ORDER Per Mathew John; 1. The applicant, who is an authorized agent of M/s. Hyundai Motor Ltd. and Honda Motors, sells vehicles manufactured by them and also provides service both during the warranty period and after the warranty period. The dispute involved in this case is about free service provided during the warranty period. The service is free to the purchaser of th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ,65,752/- under Section 76 of the Finance Act, 1994. 2. The counsel for applicant submits that Revenue has demanded service tax considering the value of components as reimbursable expenses as per Rule 5 of the Service Tax Valuation Rules and contend that this rule has been struck down by Hon'ble Delhi High Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. Vs UOI - 2013 (29 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... gument on both sides. The entire dispute arises out of the fact that this service being provided is commonly referred to in this industry as free service. This is not free service at all. This is rendered at a cost both for the services and for the parts which are paid by the manufacturer to the appellant. However, the owner of vehicle is one of the beneficiaries of the activity. The vehicle manuf .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X