2015 (11) TMI 523

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....esent case is that the appellant M/s. Y.M. Motors Pvt. Ltd are registered for providing Business Auxiliary Services and Authorized Service Station services. The appellant were not paying service tax on the commission received from banks and insurance company which was considering as taxable services under the category of business auxiliary services. It was further observed that they were recovering certain amount from the customer for RTO registration of the vehicle etc. under the head of registration charges or in the name of handling charges on which service tax appear to be leviable under the business support service. The appellant also not paying service tax on the amount charges for service of motor vehicles despite collecting the same....

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....posed under Section 78 of the Finance Act, 1994. He submits that since the appellant has paid entire service tax and interest before issuance of show cause notice and also paid the 25% of the penalty of Rs. 15,65,778/- imposed under section 78 the penalty of equivalent amount to 75% was stood reduced in terms of first and second proviso of Section 78 and also as per option given by the adjudicating authority in Order-in-Original. As regard the penalty of Rs. 10,000/- under Section 77 and 25% of the service tax amount under Section 78, he submits that appellant had newly set up the authorized service station for Toyota vehicle and being new assessee, they could not comply service tax payment in time. As regard the service tax liability on co....

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....lculated the service tax they were very well aware of levy of service tax on the service of motor vehicle. Moreover they were carrying out the services of Toyota Cars as authorized service station, therefore it can not be even presumed that the appellant is not aware of service tax liability. Therefore it is serious case of defrauding the government. As regard the service tax liability on the commission from the bank and insurance service and handling charges i.e service charges for getting vehicle registered with the RTO, it is his submission that, since the appellant has admittedly discharged service tax liability in respect of services also, the appellant also well aware of the taxability of the services, therefore they have knowingly no....