Case Law Details
MAN Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi)
In a case where the assessee had exported goods to sister concern who in turn had sold them to buyers there, with the foreign importer being responsible for providing after sales services, CESTAT Delhi has held that the discount given in consideration for non-provision of warranty and after sales services by the Indian exporter, was not liable to service tax under BAS. Deliberating upon provisions of the agreement, the Tribunal was of the view that the foreign importer was not rendering after sales service on behalf of the exporter-assessee towards provision of any service.
FULL TEXT OF THE CESTAT JUDGEMENT
1. This appeal seeks the quashing of the order dated 22 February, 2016 passed by the Principal Commissioner, Central Excise, Indorel by which the demand of service tax amounting to Rs. 1,16,32,575/- for the period 1 April, 2009 to 30 June, 2012 has been confirmed with penalty and interest.
2. The Appellant is engaged in the business of manufacture of heavy commercial vehicles falling under Chapter 87 of the Schedule to the Central Excise Tariff Act, 1985. The Appellant had entered into an Agreement dated 12 January, 2006 with M/s Man Trucks & Bus AG, Germany2 for supply of Heavy Commercial Vehicles bearing the “MAN” trademark for sale outside India. The transaction involved sale of heavy commercial vehicles by the Appellant to MAN Germany and thereafter by MAN Germany to its buyers.
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