https://www.taxtmi.com/caselaws?id=762007 CESTAT Ahmedabad ruled in favor of a car dealer challenging service tax demand on handling charges collected from customers. The appellant, a Maruti Suzuki dealer, argued handling charges were part of the car's sale price and VAT was already paid. The tribunal held that when handling charges are included in sale value and VAT is discharged, they become part of the sale price and are not subject to service tax. Following precedent from Ganga Automobiles, the tribunal found the service tax demand unsustainable since VAT assessment orders confirmed VAT payment on handling charges, making them integral to the sale transaction rather than a separate taxable service. en-us Tue, 19 Nov 2024 00:00:00 +0530 Thu, 21 Nov 2024 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762007 CESTAT Ahmedabad ruled in favor of a car dealer challenging service tax demand on handling charges collected from customers. The appellant, a Maruti Suzuki dealer, argued handling charges were part of the car's sale price and VAT was already paid. The tribunal held that when handling charges are included in sale value and VAT is discharged, they become part of the sale price and are not subject to service tax. Following precedent from Ganga Automobiles, the tribunal found the service tax demand unsustainable since VAT assessment orders confirmed VAT payment on handling charges, making them integral to the sale transaction rather than a separate taxable service. Case-Laws Service Tax Tue, 19 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762007