Demand of service tax for Extended Warranty Scheme (EWS) is sustainable post 01.07.2012.

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....CESTAT Chennai addressed the demand of service tax on upfront charges for Extended Warranty Scheme (EWS) and used car scheme. Pre-01.07.2012, the tribunal held that demand u/s 65(105)(zo) for repair services cannot sustain as repair involves materials and service. Post-01.07.2012, EWS falls u/s 65B(44) & Section 66E(e) as creating an obligation, not actual repair. It's not Works Contract Service (WCS) but a declared service. Appellant acted in good faith, so penalties were set aside. The demand for the extended period was also set aside. Impugned order modified, appeals partly allowed.....