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TMI BlogFree warranty services provided by vehicle-dealers to vehicle-buyers out of their dealer's margin/handling charges is not liable to Service taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Free warranty services provided by vehicle-dealers to vehicle-buyers out of their dealer's margin/handling charges is not liable to Service tax X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Central Excise, Pune-III [2015 (11) TMI 1114 - CESTAT MUMBAI] In the instant case, Chowgule Industries (P.) Ltd. ("the Appellant") was a holder of Service Tax Registration under the category of 'authorized service station' for Maruti Udyog Ltd. ("Maruti"). The Appellant had purchased the vehicles from the Maruti and sold to their customers. The Appellant was also undertaking servicing of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he vehicles i.e. one free service provided during the warranty period and paid service provided after the warranty period. The Appellant paid Service tax for the amount received for the services provided after the warranty period. The Department alleged that the amount received by the Appellant from Maruti as dealer's margin was to be considered as an amount received for free servicing undertaken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellant on behalf of Maruti and the handling charges which have been recovered by the Appellant from their customers would also be includable in the taxable value for recovery of Service tax. The Hon'ble CESTAT, Mumbai after noting the judgement in the case of CCE. Vs. Jabalpur Motors Ltd. [2015 (1) TMI 1140 - CESTAT NEW DELHI], held that the amounts received by the Appellant were reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded as dealer's margin & the handling charges received by the Appellant from the customers were shown in the invoices as charges and VAT was paid thereon. Further, providing of free services by the Appellant out of its margin was a part of its duty. Hence, Service tax is not leviable on free warranty services provided by vehicle-dealers to vehicle-buyers out of their dealer's margin/handl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing charges. X X X X Extracts X X X X X X X X Extracts X X X X
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