TaxTMI 
TaxTMI 
2015 (8) TMI 353
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.... appellant, alongwith interest, and penalties 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) a....
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....ed upon the case law SAI Service Station Ltd. Vs. CCE, CUS & ST, Cochin - [2015 (37) S.T.R. 516 (Tri. Bang.)] to argue that Exchange Charges TV and Non-TV are 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 yea....
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....centives involved in these proceedings are deliberated as follows :- (i) Commission on Extended Variety:- Appellant is providing certain after sales services to 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 Ve....
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....or cars, light motor vehicles or two wheeled motor vehicles in any manner." 5. It is evident from the above definition that the liability to service tax is on account of the said service provided to a customer. 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.....
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.... the case law Deputy Commissioner of Sales Tax Vs. Motor Industries Co., Ernakulam (supra). Similarly appellant is getting incentives on MGA, Incentive on Free MGA, Balance Score Card, Incentive on Wagon R and Alto Cars, Incentive 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 ac....
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....' cannot be considered as provision of BAS under Section 65 (19) of the Finance Act, 1994. This view is fortified by the case law of SAI Service Station Ltd. Vs. CCE, CUS & ST, Cochin [2015 (37) S.T.R. 516 (Tri. Bang.)], relied upon by the appellant, where it is held that activities of buying and selling of used/pre-owned vehicles after refurbishing/repairs etc. does not have any service element. 5. Appellant also argued that with respect to demands raised; under the head of Workshop Service charges for financial year 2003-2004, 2004-2005 and demand under delayed payment of service tax for financial year 2003-2004; they have been able to reconcile certain payments made which clearly indicate that more service tax has been paid then w....