No Service Tax on Free Warranty and Labour Services

Popular Vehicles and Services Ltd. Vs Commissioner of Central Tax & Central Excise (CESTAT Bangalore) Grounds raised by the appellant in the grounds of appeal is that the appellant does not receive any income with regard to free service and warranty labour provided to customers and these services are rendered free of charges and the Department has no case that the cost of these services are reimbursed to the dealers. Hence, there cannot be any levy of service tax. Further, I find that the cost of these services are included in the cost of the product accounted at sales showroom and VAT has...