No Service Tax on Spares & Accessories Used for Free Warranty Services

T.A.F.E Access Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) CESTAT, Chennai in the case of M/s. T.A.F.E Access Ltd. v. Commissioner of GST & Central Excise [Service Tax Appeal No. 526 of 2012 dated May 26, 2023] overturned the order that required the payment of Service Tax on the expenses incurred for spares and materials used in the provision of complimentary services during the warranty period. The CESTAT, Chennai held that the taxpayer is not legally obligated to remit Service Tax on the reimbursement received from the manufacturer for the cost of spares and accesso...