Service Tax Demand Quashed as Warranty Cost Reimbursements Are Not Consideration for Services

IBM India Private Limited Vs Commissioner of Central Excise and Service Tax (CESTAT Bangalore) The Customs, Excise and Service Tax Appellate Tribunal, Bangalore allowed two appeals challenging orders passed by the Commissioner of Central Excise and Service Tax, Bangalore, which had confirmed service tax demands against the appellant for two different periods: 2006–07 to 2010–11 and April 2013 to June 2017. The tax demands arose from amounts recorded in the appellant’s financial statements as “earnings in foreign currency,” which the department alleged represented consideration for ma...