2008 (12) TMI 125

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....ise for consideration are that the appellants are engaged in the sale and service of motor vehicles, computers and spares and are holding Service Tax Registration under the category of 'Servicing of Motor Vehicles', 'Technical Testing and Analysis' and 'Business Auxiliary Service'. They have authorized service station for servicing the vehicles of 'TATA Motors' at Edappally. The appellants were providing three free services to the buyers of new vehicles from M/s. TATA Motors. The costs of free services were recovered from M/s. TATA Motors. Investigations revealed that the appellants had received Rs. 24,08,727/- as cost of such free services in respect of 'Light Commercial Vehicles'. As it appeared that the appellants violated the provisions....

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....mercial vehicles (LCVs) being transport vehicles are not included in the definition of Light Motor Vehicles (LMVs) as per Section 65 (62) of the Act and when the service has been excluded by the legislation from the category of service to which it specifically belongs to, it cannot be brought to tax under another category of service which is general in nature; that in respect of 'Business Auxiliary Service' taxable service means any service provided to a client and customers who avail the free service cannot be considered as clients and hence, the basic condition for subjecting the amount to tax is not satisfied; that the services rendered by the appellant to the customers during the warranty period cannot be considered as a customer care s....

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....The Service Tax liability in this appeal is restricted to the cost of free services in respect of 'light commercial vehicles'. The case is regarding the applicability of Service Tax on the activity of servicing/repairing of the commercial vehicles. We find that Central Board of Excise & Customs vide Circular No. 87/05/2006-ST dated 6.11.2006 [reported in 2006 (77) RLT 14] clarified as under. 5. As regards the applicability of service tax on the activity of servicing/repairing of the commercial vehicles, it is clarified that as regards 'authorised service stations', the taxable service, means any service provided or to be provided, to a customer, by an authorized service station, in relation to any service, repair, reconditioning or resto....