Free services offered during warranty periods not liable to service tax

Reliable Automotive Private Limited Vs Commissioner of CGST & Central Excise (CESTAT Mumbai)

The appellant is a dealer. It purchases heavy vehicles from Tata Motors and cars from Hyundai Motors. The said vehicles are sold to customers. A demand of service tax of over Rs.33 crores was raised on the appellant on the ground: (i) the discount/incentive offered by the manufacturer by way of various schemes is consideration for providing business promotion/business auxiliary services; (ii) the free services provided during warranty period are liable to service tax; (iii) sharing of b

Please become a Premium member. If you are already a Premium member, login here to access the full content.