{"id":175,"date":"2015-07-11T06:50:55","date_gmt":"2015-07-11T06:50:55","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=175"},"modified":"2026-02-18T19:03:59","modified_gmt":"2026-02-18T19:03:59","slug":"replacement-of-defective-spare-parts","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/replacement-of-defective-spare-parts\/","title":{"rendered":"Replacement Transaction of defective spare part in warranty"},"content":{"rendered":"

\"Plan<\/h2>\n

TRANSACTION OF <\/span><\/strong>REPLACEMENT OF DEFECTIVE SPARE PARTS DURING WARRANTY\u2014AMOUNTS TO SALE OR NOT?<\/span><\/strong><\/span><\/h2>\n

In the case of\u00a0<\/strong>Kataria Automobiles (P.) Ltd. Vs. State of Gujarat,\u00a0{(2015) (Gujarat)} on 20th March 2015,\u00a0<\/em>the High Court of Gujarat held that the transaction of replacement of spare parts amounts to a sale, and the levy of tax on said sale is justified.<\/p>\n

In the said case, the assessee was a motor car dealer who purchased spare parts from the market and replaced the same in place of defective spare parts during the warranty period of motor cars for which the manufacturer issued credit notes. The point of consideration was whether the transaction of replacement of spare parts amounted to a sale and whether the levy of tax on the sale of spare parts was justified? The Assessing Authority held that the replacement of spare parts amounts to a sale and accordingly levied the tax, and the Tribunal too confirmed the order. The assessee further made an appeal to the high court of Gujarat, wherein it was held that the Tribunal is justified in confirming the levy of tax on the sale of parts during the warranty period.<\/p>\n

Further, the case of Mohd. Ekram Khan & Sons v. CTT 2004 was relied on wherein the Hon\u2019ble Supreme Court has confirmed the levy of tax on the replacement of defective parts of a vehicle during the warranty period, dismissing the appeal against the order passed by the High Court holding that such transactions constitute a sale attracting the levy of tax. The Court has held that since the assessee had received the payment of parts supplied to customers, transactions were subject to levy of tax.<\/p>\n

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your professional endeavors. For query or help, contact info@caindelhiindia.com or call at 9555 5555 480<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

TRANSACTION OF REPLACEMENT OF DEFECTIVE SPARE PARTS DURING WARRANTY\u2014AMOUNTS TO SALE OR NOT? In the case of\u00a0Kataria Automobiles (P.) Ltd. Vs. State of Gujarat,\u00a0{(2015) (Gujarat)} on 20th March 2015,\u00a0the High Court of Gujarat held that the transaction of replacement of spare parts amounts to a sale, and the levy of tax on said sale is …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[146],"tags":[546],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/175"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=175"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/175\/revisions"}],"predecessor-version":[{"id":10181,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/175\/revisions\/10181"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}