9911796707
TMI Blog2008 (12) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... and appellant is not liable to pay any Service Tax on such amount received by him - ST/22/2008 - 1388/2008 - Dated:- 5-12-2008 - Shri T.K. Jayaraman, Member (Technical) Shri M.V. Ravindran, Member (Judicial) (Final Order No. 1388/2008 dt. 5.12.2008 certified on 31.12.2008 in Appeal No. ST/22/2008 ) Shri S. Muthuvenkataraman, Adv. For Appellants Mrs. Joy Kumari Chander, JCDR for Respondent Per M.V. Ravindran: This appeal is directed against Order-in-Appeal No. 48/2007 dated 25.10.2007. 2. The relevant facts that arise for consideration are that the appellants are engaged in the sale and service of motor vehicles, computers and spares and are holding Service Tax Registration under the category of 'Servicing of Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant to the customer during the warranty period in respect of Transport Vehicles (LCVs) do not fall under the definition of chargeable service of 'Business Auxiliary Service' as defined under Section 65 (105) (zzb) and hence, the expenses reimbursed by the manufacturer in respect of free service is not liable for service tax; that as per Section 65 (105) (zo) they are liable to service tax as 'Authorized Service Station Service' only on the service charges relating to motor cars, light motor vehicles and two wheeler vehicles; that light commercial vehicles (LCVs) being transport vehicles are not included in the definition of Light Motor Vehicles (LMVs) as per Section 65 (62) of the Act and when the service has been excluded by the legis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived from M/s. Tata Motors for rendering free services. It is also her submission that the reliance placed by the Commissioner (A) on the CBEC Circular is correct. 5. We have considered the submissions made at length by both sides and perused the records. It is undisputed that the appellants are servicing motor vehicles of M/s. Tata Motors in respect of 'passenger cars' as well as the 'light commercial vehicles'. As regards the Service Tax liability on the passenger cars servicing, the appellants are discharging their Service Tax liability. The Service Tax liability in this appeal is restricted to the cost of free services in respect of 'light commercial vehicles'. The case is regarding the applicability of Service Tax on the activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived by the appellant is in respect of servicing of 'light commercial vehicles', the Circular would directly apply and appellant is not liable to pay any Service Tax on such amount received by him. 5.2 We also find that CBEC in a Master Circular No. 96/7/07-ST dated 23.8.2007 [reported in 2007 (82) RLT M29] at code 36.02 has clarified as under: Reference Code Issue Clarification 36.02 Whether servicing/repair of heavy vehicles like trucks by authorized service station is liable to service tax under Section 65 (105) (zo) Service Tax is liable on services provided by an authorized service station to a customer in relation to service, repair, reconditioning or restoration of motor car ..... X X X X Extracts X X X X X X X X Extracts X X X X
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