Per: Dr. D.M.Misra

These two appeals are filed against the respective impugned orders passed by the Commissioner of Central Excise and Service Tax (LTU), Bangalore, since common issues involved, both appeals are taken up for hearing and disposal.

2. Briefly stated the facts of the case are that the appellant are engaged in the manufacture, trading and servicing of computer systems, CPU, servers etc., falling under Chapter 84 of Central Excise Tariff Act, 1985. During the course of audit, it was noticed that the appellant was providing output services under the category of ‘Management, Maintenance or Repair Service’ (MMR service for short) either under warranty period or under Annual Maintenance Contract (AMC). They procured parts and spares on which cenvat credit was availed. The appellants are discharging service tax on AMC service; however, no service tax was paid for services rendered during warranty period even though defective components were replaced and the cost of the said components charged from their overseas entities, who in-turn, recovered the cost of the same from the Original Equipment Manufacturer (OEM). Consequently, show-cause notices dated 30.09.2011 for the period