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You’ve probably hit the nail on the head, and it is a seat-belt warning you’re hearing. Even though you may have the belt properly fastened, if the sensor that is supposed to detect the seat-belt being latched is not working, then the car will think you’re driving around unrestrained.
Jaguars of this era were not universally known for the quality of their electronics, so it’s very possible that this is precisely the problem. The catch then is that you need to check each seat-belt for a dud sensor, and there are five of them in the S Type. Other things that could trigger the same sort of alarm could be that the park-brake is not fully released or that there’s a door or bootlid ajar. Check it all and rule things out one by one.
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It's likely to be a faulty sensor, or a wiring problem related to a sensor.
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I BELIEVE in servicing cars to keep them in good fettle, but I wouldn't think your car has sustained any damage because the first service was missed. If it is running well, I would feel comfortable that it hasn't been damaged. I would, however, have stern words with the salesman who obviously misled you, probably because he was too lazy to check the car's service records before advising you when it should next be serviced.
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* Price is based on Glass's Information Services third party pricing data for the lowest priced Jaguar S Type variant.
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