2024 (5) TMI 777

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....s and ancillary equipment produced by them, and whether it amounts to rendering service under the category of "Business Auxiliary Service". For the previous period demand, this Tribunal vide final Order No. A/10744/2017 dated. 07.04.2017 had dropped the demand simpliciter towards sale of bought out spares to customers, where it was not mandatory to provide life-time spare supply and had remanded the proceedings back to the original authority to the limited extent of examining applicability of Noti.12/03-ST qua sale of spares to the customers, where the contract stipulated providing life-time supply of spares. That the said Notification No.12/03-ST is pari materia to Section 66D(e) of the Finance Act, 1994 read with Section 66B(44) of the sa....

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....contained in the contract. This Tribunal for the previous period categorically held that there cannot be any demand of service tax in respect of contracts of the first category i.e. where there is no contractual stipulation to provide lifetime spares even on trading basis by the Appellant to the customers and in such cases, the sale of spares can never attract service tax. The Revenue Authorities have chosen not to appeal against this portion of the order. At that stage, it was submitted that the demand which pertains to such category of contracts wherein equipment was originally sold without any stipulation for providing lifetime spares supplies by the Appellant on trading basis to the customers, the same must be set-aside without any rese....

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....3) 11 Centax 245 (Tri.- Ahmd) Tanya Automobiles P. Ltd. 2016 (43) S.T.R. 155 (Tri. - All.) Samtech Industries 2015 (38) S.T.R. 240 (Tri. - Del.) Commissioner v. Samtech Industries - 2015 (38) S.T.R. J434 (All. Tyresoles India P. Ltd. 2019 (21) G.S.T.L. 476 (Kar) Safety Retreading Co. (P) Ltd. 2017 (48) S.T.R. 97 (S.C.) Wipro GE Medical Systems P. Ltd. 2009 (14) S.T.R. 43 (Tri. - Bang) Commissioner v. Wipro GE Medical Systems Pvt. Ltd.- 2012 (28) S.T.R. J44 (S.C.) Kiran Motors Ltd. 2009(16) STR 74 (Tri-Ahmd) FOXTEQ SERVICES INDIA PVT.LTD-2020 (34) G.S.T.L. 470 (Tri. Chennai) Seva Automotive Pvt. Ltd. 2015(37) S.T.R. 747(Tri- Mumbai) M/s. MG Mot....

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....spective buyer helps in capturing greater market with the customers. He accordingly asserted that the demand was based upon goods which were purchased and sold like any other goods with the margin of profit and had no element of service tax, as far as sale of needed spares was concerned. He seeks to place reliance on the decision of FOXTEQ SERVICES INDIA PVT.LTD as reported in 2020 (34) G.S.T.L. 470 (Tri. Chennai) wherein under somewhat similar circumstances supply of spares computer parts was not considered as 'Business Auxiliary Service'. His point of emphasise being that supply of spares as per warranty obligation under a contract cannot be considered as service. Specially when spares are getting charged for. 3. Learned AR on the othe....