02 February 2012
Dear sir, Is it mandatory to take service tax registration for an Unauthorized mo-bike service center,if it's turnover is above 10 lakhs.
02 February 2012
No...Unauthorized service station is not liable to pay service tax under any category of taxable service.
ITs evident from recent case law
CCE, Chandigarh Versus M/s. Dynamic Motors - (CESTAT, NEW DELHI)
Authorized service station – authorized dealers of General Motors - also undertook the servicing of vehicles manufactured by the other manufacturers –demand in respect of servicing of vehicles of any other manufacturer imposed – Held that:- Authorization has to be given by the manufacturer of vehicles which is basic criteria for a person for categorisation of any centre as authorized service station and services provided is only in relation to said vehicle manufactured by those manufacturers. If an assessee has provided services to the vehicle manufactured by other manufacturer for which he is not authorized service station, the same cannot be held authorized service station vis-a-vis by that manufacturer of vehicle. If that be so, services provided in respect of vehicle cannot be held to be taxable services in the light of the definition of the authorized service station appearing under section 65 (9) of Finance Act 1994. - Decided against the Revenue.
CAclubindia
