In an order granting major relief to the car dealers, Popular Vehicles, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), the Bangalore bench has held that service tax cannot be levied on the services relating to warranty and labour provided free of cost since the same is already subjected to sales tax/VAT. The appellant contended before the Tribunal that they did receive any income with regard to free service and warranty labour provided to customers and these services are rendered free of charges.
Source Taxscan
