2017 (9) TMI 892

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....as taxable service under the category of Business Auxiliary Service. It was further observed that they were recovering certain amount from the customer for RTO registration of vehicle under the head Registration Charges or in the name Handling Charges on which service tax appeared to be leviable under the category 'Business Support Service'. Accordingly, the show cause notice was issued proposing service tax on Business Auxiliary Service, Authorized Service Station Service and Business Support Service, proposed interest on the confirmation of demand and imposition of penalty of equal amount under Section 78. Show cause notice was adjudicated and proposal of show cause notice was confirmed. Being aggrieved by the Order-in-Original, a....

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....as per the facts, the said activity is recovery of expenses such as RTO charges, fuel, pooja material while selling vehicle to the customers. This issue has been settled in various tribunal judgment that this activity is not liable to service tax. In the appellant's own case, coordinate bench of this Tribunal decided the issue as under: 2. The issue involved in these two appeals in regarding the Service Tax liability under the category of "Business Support Services" for the period July, 2007 to December, 2009 and January, 2010 to December, 2010 on an amount collected by appellant as an extra charge from their customers, apart from the sale price of the vehicles. It was contended by the appellant before the lower authorities that extr....

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.... relation to their main business of sales of cars. 5. We find that the findings recorded by the lower authorities are incorrect as the definition of Business Support Services as per Section 65(104c) of the Finance Act reads as under: "support services of business and commerce" means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of the delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructur....