https://www.taxtmi.com/caselaws?id=371126 The CESTAT Chennai bench ruled in favor of the appellant, an authorized dealer of Motor Cycles, regarding the service tax liability on reimbursements for warranty services provided. The bench held that the demand for service tax on the cost of spare parts used in warranty services was not justified, as the cost of spare parts sold with VAT cannot be included for service tax levy. Additionally, amounts recovered as extended warranty premiums were not considered reimbursements for spare parts and were not liable for service tax. The bench set aside the demand for service tax and allowed the appeals with consequential benefits as per the law. en-us Tue, 13 Nov 2018 00:00:00 +0530 Thu, 29 Nov 2018 07:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371126 The CESTAT Chennai bench ruled in favor of the appellant, an authorized dealer of Motor Cycles, regarding the service tax liability on reimbursements for warranty services provided. The bench held that the demand for service tax on the cost of spare parts used in warranty services was not justified, as the cost of spare parts sold with VAT cannot be included for service tax levy. Additionally, amounts recovered as extended warranty premiums were not considered reimbursements for spare parts and were not liable for service tax. The bench set aside the demand for service tax and allowed the appeals with consequential benefits as per the law. Case-Laws Service Tax Tue, 13 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371126