TaxTMI 
TaxTMI 
TaxTMI 
2015 (8) TMI 353
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....ies have also been imposed under Section 76, 77 and 78 of the Finance Act, 1994. 2. Shri Amit Awasthi (Advocate), Shri Ankit Vishnoi (Advocate) and Ms. Yashasvini Chandra (Advocate) appeared on behalf of the appellant. Learned Advocate Shri Amit Awasthi argued that appellant is an authorised dealer of Maruti Udyog Limited (MUL) and is registered with the Revenue for providing Motor Vehicle Servicing, Business Auxiliary Services and Clearing and Forwarding Services. It was argued that the case of the Revenue is regarding following incentives & reimbursements received from MUL on which service tax is required to be paid by the appellant under Business Auxiliary Service (BAS) under Section 65 (19) and Section 65 (105) (zzb) of the Finance Act....
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.... not liable to service tax. With respect to commissions received from MUL it was argued that MUL has paid service tax on the gross amount received from financial institutions which is covered as per para 17 of case law CST, Mumbai I Vs. Sai Service Station Ltd. [2014 (35) S.T.R. 625 (Tri Mumbai)]. Regarding service tax on free services provided by the appellant it was argued by Learned Advocate that the same is also covered by CCE, Indore Vs. Jabalpur Motors Ltd. [2014 (36) S.T.R. 1160 (Tri. Del.)]. With respect to demand raised under the head workshop service charges for financial year 2003-2004, 2004-2005 and delayed payment of service tax for financial year 2003-2004 it was argued that a total of Rs. 6,46,255/- was paid by the appellant,....
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.... the customers on behalf of MUL for which appellant is getting a commission from MUL and the same is accounted in their books of accounts as commission on extended warranty. Such an activity will have to be considered as a service provided on behalf of MUL and has to be considered as BAS under Section 65 (19) of the Finance Act, 1994. Order passed by the Adjudicating Authority is required to be upheld to this extent. (ii) Maruti Online Services (MOSS) - Appellant is maintaining mobile vehicles to attend to the complaints of the customers who have purchased Maruti Vehicles. As per the agreement between the appellant and MUL these facilities are required to be available by the appellant for which certain payments are received from MUL. Such....
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....ustomer. The service is provided to the car buyers who are the customers. For the free services, no amount is charged from the customers. As regards the contention that amount towards the free services is reimbursed by Maruti Udyog Ltd., it is seen that Maruti Udyog Ltd. have categorically stated that they do not reimburse any amount towards such free services to the dealers. The respondents have also stated that providing such free services is part of the functions and duties of dealers who are entitled to the dealership commission. Also the free services are rendered to the car buyers and not to M/s MUL and the car buyers pay nothing therefore. Seen in this light it is evident that the demand of service tax as per column 5 of the table ab....
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....ntive on Esteem and Maruti 800 etc., Incentive of free Credit, Incentive on sale of employees of LIC, SBI and Fetchers Scheme, Misc. Spot Credit and IFC, Finance pay out and National Subvention of MUL, part reimbursement of advertisement and incentive for arranging camps/sales mela and Free Mega Checkup Camps. It is the case of the appellant that all these amounts received from MUL, are either compensatory payments or in the nature of performance based trade discounts on achieving certain performance targets or is an activity which is mutually beneficial to both the appellant and MUL. It is not the case of the Revenue that MUL continues to remain the owner of the goods dealt by the appellant. All the vehicles/spares are purchased by the app....