https://www.taxtmi.com/caselaws?id=753286 CESTAT Chennai ruled on service tax demands for Extended Warranty Scheme (EWS) charges collected by an automobile company. For the pre-2012 period, the tribunal set aside demands under repair to vehicle services, following precedent that such services involve both materials and service components. For post-2012 period, the tribunal upheld service tax liability, classifying EWS as a declared service under Section 66E(e) - creating obligation to perform future acts rather than actual repair work. However, penalties and extended period demands were set aside due to bona fide belief and lack of suppression, as the appellant had classified EWS under works contract services and paid taxes accordingly. en-us Mon, 27 May 2024 00:00:00 +0530 Wed, 29 May 2024 17:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753286 CESTAT Chennai ruled on service tax demands for Extended Warranty Scheme (EWS) charges collected by an automobile company. For the pre-2012 period, the tribunal set aside demands under repair to vehicle services, following precedent that such services involve both materials and service components. For post-2012 period, the tribunal upheld service tax liability, classifying EWS as a declared service under Section 66E(e) - creating obligation to perform future acts rather than actual repair work. However, penalties and extended period demands were set aside due to bona fide belief and lack of suppression, as the appellant had classified EWS under works contract services and paid taxes accordingly. Case-Laws Service Tax Mon, 27 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753286