9911796707
TMI Blog2008 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals), same are heard together and being disposed of by a common order. Appeal No.ST/437/07 is filed by M/s. Dixon Electronics (hereinafter referred to as the Appellant) and the Appeal No.ST/552/07 is filed by the respondent -CCE, Chandigarh. 2. The Appellants are engaged in repair of various electronic appliances manufactured by M/s. Samsung India Electronics Ltd. Maintenance & Repair Services were brought into the service w.e.f.1.7.03. The appellants have been paying service tax on the amount received from the customers. However, it was found by the Department that as per their agreement with M/s. Samsung India Electronics Ltd., they were providing free repair service to certain customers of M/s. SIEL with the warranty pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Appeals)'s order maintaining the penalty of Rs.100/- under Section 76 and penalty of Rs.one lakh under Section 78, the Revenue has filed appeal against reduction of penalty under Section 78 to Rs.one lakh. 3. Heard both the sides. 3.1 Shri Atul Gupta, CS, the learned Counsel on behalf of the Appellant pleaded that there was bona fide reason for non-payment of service tax as the amount of Rs.35,000/- per month + reimbursement for providing free repair service to the customers of M/s. SIEL during the warranty period was being received from M/s. SIEL and not from the customers and for this reason, the Appellants were under bona fide believe that no service tax was payable on this amount and as soon as the Department pointed out to them th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranting repair was not being paid. 4. I have carefully considered the submissions from both the sides. The Appellants were doing the repair job as authorized service centre of M/s. SIEL and the repair jobs were of two types one type of repair jobs were those where the amount for repair was being charges from the customers and on this amount, the service tax was being paid and this amount received from the customers and the service tax was paid on the same was being declared to the service tax returns. The other job of repairs being carried out were the free repairs under warranty period on behalf of the manufacturer i.e. SIEL and for these repairs while no amount was being charged from the customers, the Appellants were getting a fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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