9911796707
TMI Blog2018 (1) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... ice, does not mean that the service is an exempted service - appellant is providing taxable service of Repairs and Maintenance to the customers free of cost during the period of warranty. Whether the appellant is engaged in the activity of trading or not? - Held that: - the appellant is a branch office of their head office and they are getting the goods on stock transfer basis from head office for sale. Therefore, the appellant are selling their own goods, manufactured by them. If the person selling the goods manufactured them, in that circumstance, the appellant cannot be said that he is a trader - the appellant is not engaged in the activity of trading. Appeal allowed - decided in favor of appellant. - Appeal No. ST/55595/2013-DB - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of the appellant submits that the show cause notice was issued to the appellant on the premise that free of cost service provided by the appellant during warranty period is an exempted service. In fact, the value of these services is included in the cost of the goods sold by them and it is the condition of the sale of their product that they will provide free service of Repair and Maintenance during the period of warranty. In that circumstance, it cannot be termed that they were providing exempted service although they are not charging for the same and the Repair and Maintenance services are taxable service in terms of Section 65 (105)(zzg) of the Finance Act, 1994, therefore, Cenvat credit cannot be denied. He further submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered the submissions. The issue emerges before us after the arguments advanced by both sides are:- (a) Whether the service of Repair and Maintenance provided by the appellant during the period of warranty free of cost, is an exempted service or not? (b) Whether the appellant is engaged in the activity of trading or not? As regards the issue (a) above, whether the services of Repair and Maintenance provided by the appellant during the period of warranty free of cost, is an exempted service or not? We find that Repairs and Maintenance service is taxable service with effect from 01.07.2003 in terms of provisions of Section 65 (105) (zzg) of Finance Act, 1994 and the said activity thereafter has never been exempted by the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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