2015 (11) TMI 1114

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... vehicles one free service provided during the warranty period and paid service provided after the warranty period. It was observed by the authorities that the appellant had received an amount from Maruti Udyog Ltd. for free servicing during the warranty period and paid service tax for the amount received after the warranty period hence, it was concluded by the lower authorities that the amount recovered and received from Maruti Udyog Ltd. is included in the taxable value in terms of section 67 of the Finance Act 1994. Two show cause notices were issued, which, after following due process of law demands got confirmed with interest and penalties were also imposed; on an appeal the first appellate authority has rejected the appeal. 3. Learne .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e appellant are recorded by Maruti Udyog Ltd. as well as the appellant as dealers margin and the handling charges received by the appellant from the customers are shown in the invoices as charges and value added tax is paid on such amount. 8. On this background, we find that the entire case of the revenue is misdirected, in as much is the very same issue was in the case before the Tribunal in the case of Jabalpur Motors Ltd. (supra) we reproduce the entire judgment. '2.Briefly stated, the demand in column 4 is in respect of the amount of salary of drivers of mobile vans used for providing mobile services to the car buyers as this salary amount was reimbursed by M/s. Maruti Udyog Ltd. The demand in respect of column 5 of the table abov .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... econditioning or restoration of motor cars, light motor vehicles or two wheeled motor vehicles in any manner." 5. It is evident from the above definition that the liability to service tax is on account of the said service provided to a customer. The service is provided to the car buyers who are the customers. For the free services, no amount is charged from the customers. As regards the contention that amount towards the free services is reimbursed by Maruti Udyog Ltd., it is seen that Maruti Udyog Ltd. have categorically stated that they do not reimburse any amount towards such free services to the dealers. The respondents have also stated that providing such free services is part of the functions and duties of dealers who are entitled to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X