2013 (10) TMI 1155

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....emanding service tax for the period July, 2003 to March, 2006 on the following counts:-    (a) Commission received from various banks and financial institutions, through M/s. Maruti Udyog Ltd. for promoting, marketing and selling 'auto Finance' product under the mark 'Maruti Finance'. An amount of Rs. 61,82,304/- has been demanded on this count.    (b) Finance commission received from various banks and financial institutions for arranging 'Auto Finance' loan to their prospective buyers, by acting as 'Direct Sales Agent (DSA). An amount of Rs.40,21,291/- has been demanded towards Service Tax on such commission.    (c) Commission received from M/s. Maruti Udyog Ltd. (M/s. MUL) on account of sales/target incent....

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.... whether the activity undertaken by the assessee comes under the scope of "business support service, therefore, the allegation of suppression with intent to evade payment of tax is not sustainable. The assessee relied on the decision in the case of Bridgestone Financial Services vs. Commr. of Service Tax, Bangalore - 2007 (8) STR 505 (Tri-Bang.) and in the case of City Motors & Financial Servies vs. CCE, Gurgaon - 2012 (25) STR 449 (Tri-Del.) and other decisions whereby the Tribunal only confirmed the demand for the normal period and demand beyond the normal period and penalties were set aside. 9. The contention of the Revenue is that on merits, the issue is settled by the following decisions of the Tribunal in the case of    (1....

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....rk "Maruti Finance". The contention is that as the 'activity falls under the business auxiliary service, the assessee is liable to pay service tax. 12. In respect of dropping of Rs.47,32,807/- the contention is that as the assessee are receiving consideration on account of sales of vehicles and incentive on sale of spare parts for promoting and marketing the products, as these activity is for promoting and marketing of product of MUL, therefore, liable to service tax under the heading of business auxiliary service. 13. In reply to the contention raised in the Revenue's appeal, the contention of the assessee respondent is that MUL has paid the service tax on the gross amount received from the bank/finance institutions including the commiss....

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....is we find no reason to interfere with the impugned order whereby the demand is confirmed by treating the activities undertaken by the assessee under Business Auxiliary Service. 16. In respect of time bar, the contention of the assessee is that there was a confusion in the Board's circular whether the activity comes under the business auxiliary service or not. We find that MUL was paying service tax on the commission received from various banks/finances institutions. MUL advised the assessee to get registered with the Service Tax department and to pay service tax on this activity. In spite of this, the assessee had not paid service tax though got registered with the Revenue as provider of taxable service in October, 2004. In view of this, ....