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of <h1>Tribunal partially allows appeal on service tax demand, interest, and penalty, remands other issues for re-examination</h1> <h3>M/s Commercial Motors Versus Commissioner, Central Excise, Meerut-II</h3> M/s Commercial Motors Versus Commissioner, Central Excise, Meerut-II - TMI Issues Involved:1. Demand of Service Tax on Sales Incentives2. Allegation of short payment of Service Tax under Business Auxiliary Service3. Demand of Service Tax on Renting of Immovable PropertyAnalysis:Issue 1: Demand of Service Tax on Sales IncentivesThe first issue in the present appeal pertains to the demand of Service Tax amounting to Rs. 75,62,660 on Sales Incentives received by the appellant from M/s Tata Motors Ltd. The appellant contended that the incentives received were in the form of cash discount or turnover discount and not commission on sales. The Tribunal referred to a previous decision where it was held that demand raised on sale target incentives cannot be considered as Business Auxiliary Service. Relying on this precedent, the Tribunal set aside the demand of Rs. 75,62,660 along with interest and equal penalty.Issue 2: Allegation of short payment of Service Tax under Business Auxiliary ServiceThe second issue involves an allegation of short payment of Rs. 24,93,761 under Business Auxiliary Service. The appellant argued that they had actually paid a higher amount than what was considered by the Revenue. There were discrepancies in the total consideration received under Business Auxiliary Service, with the appellant claiming a lower amount. The Tribunal decided to remand the matter to the Original Authority for re-examination, considering the documents available on record and allowing the appellant to submit additional evidence.Issue 3: Demand of Service Tax on Renting of Immovable PropertyThe third issue concerns the demand of Service Tax amounting to Rs. 1,12,260 on Renting of Immovable Property for the period from 2007-08 to 2011-12. The appellant argued that since the issue was under litigation, the extended period of limitation could not be invoked. The Tribunal agreed with the appellant and remanded the matter to the Original Authority for further examination after providing an opportunity for the appellant to present their case.In conclusion, the Tribunal partly allowed the appeal by setting aside the demand, interest, and penalty related to the sales incentives involving service tax, while remanding the remaining matters to the Original Authority for further review and examination based on the evidence and submissions presented.
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