Case Law Details
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 accessories used for providing free services provided during warranty period.
Facts:
M/s. T.A.F.E Access Ltd (“the Appellant”) an authorized dealers of M/s. Tata Motors (“the Manufacturer”) is engaged in selling of cars and providing free service during the warranty period for the cars sold by them. The expenses for providing free service were reimbursed by manufacturer.
The Appellant was paying service tax on the labour charges but was not discharging service tax on cost of spares which was reimbursed by Manufacturer.
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