2024 (3) TMI 227

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....ral Excise Registration. They engaged in marketing and after sales service of their final products through their branches and through a network of dealers. The appellants were availing credit of service tax paid on the Management, Maintenance or Repair service provided by their authorized dealers to the customers during the warrant period. It appeared to the department that the said credit is not eligible for the reason that it is rendered after the manufacturing activity and also because the services are provided by the dealers. Show cause notices were issued for the different periods viz. October 2007 to December 2011, January 2012 to December 2012 and January 2013 to September 2013 proposing to disallow the credit and demand the wrongly ....

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....on in the appellant's own case for the period October 2013 to October 2014 and November 2014 to January 2015. The Tribunal vide Final Order No.42559/2016 dt. 30.12.2016 while allowing the appeal, observed as under : "Appellant had contractual obligation to meet the cost of servicing of the vehicle sold through dealers. Accordingly, it was required to meet the service tax liability of the dealers in so far as the post-sale warranty is concerned. Accordingly, the service tax paid by the dealers being on behalf of appellant, the same is allowable as Cenvat Credit to it. Such decision has been taken in the appellant's own case Tribunal vide Final Order No.42315/2016 dated 25.11.2016 in Appeal No.E/41095/2016. There is no material difference a....

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....rers of vehicles M/s. Maruti Udyog Ltd., M/s. Tata Motors etc. The vehicle manufacturers have an obligation to fulfill the warranty claims of the vehicles sold by them. Whenever a customer puts forward claim during the warranty period, the dealers/manufacturers fulfills such claim and does the repair and maintenance and servicing of the vehicles. The parts, which are required to be replaced, are procured from the appellant herein, who, has to provide the same to the vehicle manufacturers. Thus, there is an obligation on the part of the appellant to fulfill such supply during the warranty period. The service provider, who has done the maintenance and repair during the warranty claims have paid service tax on such Repair and Maintenance Servi....