Case Law Details
International Combustion India Ltd. Vs CCE (CESTAT Mumbai)
In the instant case the Appellants are receiving goods for refurbishing or repair from their customers as and when the need for repairs is felt by the customers of the appellants. There are two types of customers who are availing such services from the Appellants. Some customers have opted for the warranty/ guarantee scheme and some of them have not. The method followed by the Appellants is that in respect of the customers who have opted for the warranty/ guarantee the customers are not charged for the replacement of any parts, damaged, etc. In the other case the customers have charged for such parts. In either case, the Appellants are discharging the duty of Central excise on the spares/ parts used in repair and refurbishing on going through sample invoices it appears that the contention of the Appellant is correct. Though the service is rendered no remuneration for such repair and maintenance service is charged/ received by the Appellants. In the absence of consideration for the service rendered it cannot be argued that the Appellants are liable to pay service tax on such services provided by them. Arguably, service tax payment is necessary when the four things are satisfied;
(i) There is a service
(ii) There is a service provider
(iii) There is a service recipient
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