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TMI Blog2018 (8) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... The free service sale services of the vehicle provided during warranty period is an input service for the manufacturer - credit allowed - appeal allowed - decided in favor of appellant. - Appeal No. E/2072/2011 - A/62526/2018-EX[DB] - Dated:- 5-7-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Present for the Appellant: Shri R.K. Hasija, Advocate Present for the Respondent: Shri G.M. Sharma, AR ORDER PER: ASHOK JINDAL The appellant is in appeal against the impugned order wherein service tax paid to the dealers for providing free services to the buyers of vehicles during warranty period has been denied to the appellant on the ground that the said services have been received b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or actually payable on such goods. By going through the said provision, we find that the transaction value means the price actually paid or which are payable for the goods when sold and those includes servicing and warranty also. Admittedly the service and warranty is post manufacturing expenses which are to be provided to the customer after sale. As per the provision of Section 4(3)(d) the value of warranty and servicing which is a post manufacturing are includible in the assessable value and therefore, these expenses incurred in the service are entitled for input service credit. 5.2 We do not find any force in the arguments of the learned AR. that the expenses incurred after sales service is not an 'input service' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges/cost. Further, as per the definition of transaction value under Section 4 of the Central Excise Act, 1944 amounts charges towards servicing, warranty etc. are includible in the transaction value. In this case also the services provided by the repairer i.e. M/s. Danke Electricals by way of repair/maintenance in respect of transformers sold (by the three appellants) to GEB and falling within the warranty period were provided by M/s. Danke Electricals at the instance of the manufacturers and not on their own or at the instance of GEB. The payments for the said services were made by the Appellants including the service tax involved thereon. The aspect that the impugned transformers for repair/service were directly received from the cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondents were under a legal obligation to provide repair and maintenance service to GEB. The value of such services already stands included in the assessable value of the transformer in terms of Section 4 of CEA, 1944. The respondents could have provided such services on their own and paid the service tax and availed the credit of the same in which case, there would not have been any dispute. Instead of providing the repair and maintenance service themselves, they engaged DEL to do the same. As rightly concluded by the Commissioner (Appeals) such services were, in fact, being provided by DEL to the respondents and not to GEB. The fact that the same was in respect of the transformers already sold to GEB, would not change the situation inasm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to GEB. I note that the definition of input service stand examined by Larger Bench of the Tribunal in case of M/s. ABB Ltd. as reported in 2009 (15) S.T.R. 23 (Tribunal-LB) = 2009 (92) RLT 665 (CESTAT LB), and it has been held that expressions activities relating to business are of wide import and would take into its ambit all types of activities. Admittedly, the repair and maintenance of transformers, being an activity relating to the sale of goods, and hence can be said to be relevant to the business, it stand rightly concluded by the Commissioner (Appeals) that service of repair and maintenance of transformers during warranty period is a service covered by definition of input service and the assessees are entitled to take Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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