2018 (6) TMI 135

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....he free services provided by them. The department took a view that the appellant had received this amount in lieu of free services provided by them to the buyers of the vehicles. Accordingly, department issued two show cause notices alleging that such amount is liable to service tax as the same has been received in lieu of free service provided by the appellant and was taxable under the Authorised Service Station category. Two show cause notices were adjudicated and the respective demands of Rs. 38,540/- and Rs. 74,068/- were confirmed along with interest and penalties were also imposed under Sections 76, 77 and 78 of the Finance Act, 1994. Against the said orders, the appellant filed appeals before the Commissioner (Appeals) who rejected t....

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....rd of the noticee. The appellant has relied on the following case laws:- (a) CST vs. Prompt & Smart Security - 2008 (9) STR 237 (Tri. Bang.) (b) Andhra Pradesh Tourism Devl. Corp. Limited vs. CCE, Hyderabad - 2012 (28) STR 595 (Tri. Bang.) (c) Hindalco Industries vs. Commissioner - 2003 (161) ELT 346 (Tri.) (d) Hariss Laboratories vs. Commissioner - 2005 (185) ELT 421 (Tri.) (e) Nizam Sugar Factory vs. CCE, A.P. - 2006 (197) ELT 465 (S.C.) (f) CCE vs. First Flight Courier Limited - 2011 (22) STR 622 (P&H) It was also contended that the show cause notice dated 26.02.2007 covering the period 01.04.2004 to 30.09.2006 is barred by time as the facts were already known to the department. 3. Ld. A.R. reiterated the findings in the order of....

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.... of three free services and for maintenance of complete control system. Hence, it is not correct to conclude that it is reimbursement for three free warranty services provided by the appellant to the buyers of the vehicles. In fact, the show cause notice itself mentions that no reimbursement is being received by the appellant for the free warranty services. We find that the law on the issue of leviability of service tax on the free warranty service is settled by numerous judgments of this Tribunal and in one such judgment, namely ASL Motors Pvt. Limited vs. CCE, Patna - 2008 (9) STR 356 (Tri. Kolkata) this Tribunal took the following view in favour of the assessee:- "4. We find that the Ministry in its Circular No. 28/2006-Cus. (sic) (Circ....