2015 (10) TMI 457

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.... the service tax demands of Rs. 1,84,53,424/- under the taxable service category of Business Auxiliary Service'. Rs. 32,38,391/- under the taxable service category of 'Authorised Service Station' and Rs. 11,24,288/- under the taxable service category of 'Renting of Immovable Property'. He has also confirmed interest liability on the above demands apart from imposing an equivalent amount of penalty under Section 78 of the Finance Act, 1994 and a penalty of Rs. 10,000/- under Section 77 of the Finance Act, 1994. Aggrieved of the same, the appellant M/s. My Car Pune P. Ltd. is before us. 3. The ld. CA appearing for the appellant submits that bulk of the demands confirmed against the appellant are not sustainable. 3.1. As rega....

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....ry inspection charges, miscellaneous income from sale of scrap etc. and income on account of trade discount received from Maruti Suzuki Ltd. whose car they are selling as dealers. He further submits that these discounts have been given to the appellant on account of their achieving certain targets for lifting of cars from Maruti Suzuki Ltd. in other words, these are discounts in the nature of quantity discounts and these payments received from Maruti Suzuki Ltd. has nothing to do with any service rendered by the appellant to Maruti Suzuki Ltd. and therefore, these incentives/discounts are not exigible to service tax. However, the ld. Consultant fairly concedes that he is liable to discharge service tax on the pre-delivery inspection charges....

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....d by way of refund and short payments have to be made good by the appellant to the department as principles of unjust enrichment might be involved in any refund claim. Nevertheless, the appellant has to be given due credit for the payments already made. Inasmuch as this has not been done, the mater has to go back to the Adjudicating Authority for recomputation of the correct service tax demand. 5.2 Similarly, in respect of demand under the taxable service category of 'Authorised Service Station', here also we find that the appellant has discharged part of the service tax liability through Cenvat Credit account and part in cash. However, due credit for these payments have not been given by the Adjudicating Authority for the reason tha....

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....ome received under PDI charges which is Rs. 4,85,94,830/-. As regards miscellaneous income of Rs. 28,40,620/- the appellant's claim is that this income is derived from sale of scrap and nothing to do with any service rendered. This is a verifiable fact and the appellant has to lead evidence in support of how the income has originated and corresponding bills/invoices issued towards this income. The main dispute relates to incentive received from Maruti Suzuki Ltd. The appellant's claim is that this income is nothing but trade discount received by them which is in the nature of quantity discount and has been passed on to the appellant by Maruti Suzuki Ltd. by way of credit notes. It is also the submission that the credit notes indicat....