2007 (9) TMI 194

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....peal No. 122/2006 ST dated 2-6-2006 by which Service Tax has been confirmed on the appellants who were carrying on free service of cars under the category of "Authorized Service Station" in respect of the cars sold through their agencies. The appellants were discharging Service Tax in respect of the activities carried out under the category of 'Authorised Service Station' but they had not paid Ser....

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....hat the Ministry has clarified in the Circular F. No. B11/1/2000 TRU, dated 9-7-2001 that the Service Tax is not required to be discharged by dealers who have sold the vehicle through their agencies and have rendered free service. 3. The learned Counsel submits that the appellants have not received any reimbursement for free services carried out by them in respect of the cars sold by them. He s....

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....he evidence for reimbursement for the services rendered. He was not in a position to show us any evidence for reimbursement. The Adjudicating authority has stated that the cost for the services rendered is actually hidden in the cost of the vehicles itself. Thus, we find that the demand of service tax in these cases is based on assumptions and presumptions. When a service is free, unless Revenue s....