https://www.taxtmi.com/caselaws?id=448280 The CESTAT Bangalore held that service tax cannot be levied on warranty services where no consideration is received from customers. The appellant provided services during warranty period without charging customers, making valuation rules inapplicable. Additionally, compensation received from OEMs for defective parts replacement constitutes reimbursable expenses, not taxable service consideration, following SC precedent in Intercontinental Consultants case. The tribunal set aside the service tax demand of Rs.5,78,742/- and allowed the appeal, ruling that absence of consideration negates service tax liability under Management, Maintenance or Repair Service provisions. en-us Mon, 01 Jan 2024 00:00:00 +0530 Fri, 16 Aug 2024 14:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448280 The CESTAT Bangalore held that service tax cannot be levied on warranty services where no consideration is received from customers. The appellant provided services during warranty period without charging customers, making valuation rules inapplicable. Additionally, compensation received from OEMs for defective parts replacement constitutes reimbursable expenses, not taxable service consideration, following SC precedent in Intercontinental Consultants case. The tribunal set aside the service tax demand of Rs.5,78,742/- and allowed the appeal, ruling that absence of consideration negates service tax liability under Management, Maintenance or Repair Service provisions. Case-Laws Service Tax Mon, 01 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448280