TaxTMI 
TaxTMI 
2017 (10) TMI 136
X X X X Extracts X X X X
X X X X Extracts X X X X
....es. They are also engaged in promotion and marketing of the said goods of Mahindra and Mahindra and have received Commission, incentives and profit/ overriding commission on sale of vehicles to Government, directly billed by the manufacturer Mahindra and Mahindra to the Government of U.P. It appeared to revenue that the appellant was also providing Business Auxiliary Service, with respect to the sale/purchaser of vehicles, but they were not paying Service Tax on commission received from Mahindra and Mahindra, being their clients. The appellants were asked to submit the details of commission, incentive, received by them on different schemes, commission from Automart, profit on sale of Government vehicle, overriding Commission on Government s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hey have not received any commission from financial institution/banks/insurance company etc. Accordingly, it appeared to revenue that the appellant is liable to pay Service Tax on these receipts relating to the period 2003-04 (from October 2004) up to 2008-09 (October, 2008) and accordingly a demand of Rs. 21,49,481/- was proposed. There was further proposal to appropriate the amount of Rs. 02,33,141/-+ Rs. 61,918/- + Rs. 12,000/- totaling Rs. 3,07,059/-, towards Service Tax. Further, levy of interest and penalty was also proposed. 3. The SCN was adjudicated on contest and the proposed demand was confirmed and appropriated in part with interest and further penalty of Rs. 21,49,481/- was imposed under Section 78+ penalty under S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....similar facts and circumstances with respect to a dealer of Maruti Udyog Ltd., it was held that no consideration is received by the assessee/dealer from the manufacturer, who engaged in buying and selling of old cars. These activities cannot be considered as provision of BAS under Section 65(19) of Finance Act. So far the amount shown in their accounts towards profit on sale of vehicles to Government Department/overriding commission or overriding income, stated that on the insistence of Government Departments, the appellant gets the Billing done directly from their Manufacturing Co. - Mahindra and Mahindra and the appellant is further instrumental in receiving the vehicles and effecting the delivery to the Government Departments. In such ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....services being provided by the appellant, arrangement of documentary requirements from the customers for principal, liaison with the customers for timely delivery, delivery of vehicle to the consignees, sending of provisional receipts and inspection notes from consignee to the principal and arrangement of waybill or entry permits required for dispatch of vehicles etc., are covered in terms of C &F agent, providing inter-alia, above service is covered within the meaning of C & F agent as defined in Section 65 (25) of the Finance Act. On considering the facts and circumstances, the Hon'ble High Court had held that the dealer is engaged in the business of selling cars of the manufacturer as authorised dealer. The main work of the dealer is to ....