TaxTMI 
TaxTMI 
2023 (8) TMI 408
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....or Vehicles viz. "Authorised Service Station'. They have included their service centres and Trichy, Karur, Villupuram and Kumbakonam in their registration and making centralized payment at the registered premises at Coimbatore. It was found that the appellants had received reimbursement of the cost of spares replaced in the course of service of vehicles during the warranty period from the manufacturer to the tune of Rs.31,20,024/- for the period from April 2011 to March 2012. It was alleged by the department that when the consideration is partly in money, value shall be the total of such monetary consideration money-equivalent of the other non-money consideration. Hence the appellant was liable to pay service tax on the value of reimburseme....
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....the automobile manufacturers, for undertaking servicing and repair during warranty period. During the relevant period, any reimbursement of expenses claimed by a service provider cannot be subjected to levy of Service Tax as held by the Hon'ble SC in UOI Vs Intercontinental Consultants and Technocrats Pvt. Ltd. The appeal of the appellant for a previous period on the same matter had already been allowed by this Hon'ble Tribunal in Final Order 41429/2018 dated 02/05/2018. Further, the appellant also wishes to submit that recently the Hon'ble Supreme Court has held in the case of Tata Motors Vs DCCT 2023-TIOL-66-SC that such reimbursements received by authorized service centers from automobile manufacturers is liable to VAT. Once a transactio....
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.... We find that the Hon'ble Apex Court in Commissioner Central Excise & Customs, Kerala vs. Larsen & Toubro Ltd. [Civil Appeal No. 6770 OF 2004/ 2015 (39) S.T.R. 913 (S.C.)], held that 'Works Contract' is a separate species of contract distinct from contracts for services simpliciter recognized by the world of commerce and law as such and has to be taxed separately as such. Hence the impugned service has to be examined as a 'works contract' with respect to its taxability. 8.1 It would be relevant to examine the legal position as per the Finance Act 1994. Section 65(105) (zzzza) of the Finance Act, 1994 which deals with the taxability of works contract from 01.06.2007, is reproduced below; "To any person, by any other person in relation to ....
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....lation to construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry or construction of a new residential complex or a part thereof alone are covered. Repair and maintenance of vehicles is not covered under Explanation (ii)(d). A major shift in the service tax provisions was made by the introduction of the 'negative list' of services in the Finance Act 1994. After deleting the "definition section" from the Finance Act, 1994, one new Section 65B (Interpretations) has been inserted by the Finance Act, 2012. In the new system all services, except those specified in the negative list, were subject to Service Tax. Subsequently Notification No. 19/2012 ST ....