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TMI Blog2014 (8) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... : Pradip Kumar Das Heard both sides and perused the records 2. The applicant is engaged in the manufacture of passenger cars and parts. The applicant sold cars through their dealers and warranty has given to the ultimate customers for a period of two years. Thereafter, it is the option of the customers to avail "extended warranty plan" for maintenance through the authorised service station. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01.05.2011, Clause (zo) as amended by Finance Act, 2008, with effect from 16.05.2006 reads "to any person, by an authorised service station, in relation to any service, repair, reconditioning or restoration of motor cars ... in any manner". According to the Revenue, the contract of extended warranty is between the applicant and customer and the dealer is only seller of extended warranty. So, after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant is eligible to avail Cenvat credit and, therefore, it is a revenue neutrality. He fairly submits that at the stay stage the demand of tax on the parts, including the value of the parts is not sustainable. In this context, he drew the attention of the Bench to the reply to the show-cause notice. It is seen that the applicant stated that the percentage of labour is averaged between 6-7%. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded, where VAT was paid for assessment, determination of value under Section 66 of the Finance Act, 1994. The applicant in their reply to show cause separately declared the parts value, labour value and consumable values. 7. Considering the overall facts and circumstances of the case, we direct the applicant to deposit a sum of Rs. 40,00,000/- (Rupees Forty Lakhs only) within a period of six wee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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