Dear Sir,
One of the my client is a distributor of YoBike brand Electric Bike. It is run by battery through electric engine and Moter Vehicle Act is not apllied on this vehicle. My question is that whether Service tax on this bike will be applicable or not? Service Tax authorties is making pressure to pay serive tax under Automobiles service station. But I have given a written submission to the authorties that this bike is not operated through mechnical engine, it is operated through electric engine so it is not covered under MV Act, while service tax is applied on such vehicle as are operated through mechnical engine. Therefore, service tax under Automobiles service will not be levied.
I would like to know that my submission is correct or not and service tax on this vehicle should be paid or not on the basis of above views.
Thanks.
Abhishek Srivastava, Adv.
