TaxTMI 
TaxTMI 
2018 (6) TMI 807
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...., as upon scrutinization of the ST-3 returns the jurisdictional officer requisitioned certain documents and information, which were submitted by the appellant on 28^th May, 2012 wherein they submitted their trial balance for the said period including trial balance for 2011-12. On going through the trial balance for the relevant period, it appeared to Revenue that appellant have received income from workshop, discounts, incentives and commission. The details of such receipts have been given in the show cause notice in Table-A and Table-B for the period 2007- 08, Table-D for the period 2008-09 and Table-E for the period 2009-10, Table-G and H for the period 2010-11 Table-I and J for the period 2011-12 wherein certain receipts, it appeared to Revenue, are taxable on which Service Tax has not been paid. It was further noticed that the appellant is filing separate returns for 'Authorized Service Station activity' and the 'Business Auxiliary Services'. Accordingly Revenue worked out the Service Tax short paid as follows: - Category: Authorized Service Station Amount in Rs. Year Value as per Trial balance Value as per ST-3 return Difference in value Rate of Serv....
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.... 27, 17, 906/- was demanded with further proposal to impose penalty under section 78 of the Act. 5. The show cause notice was adjudicated on contest vide impugned Order-in-Original. The appellant filed detailed objections to the proposed demand mainly on the ground that most of the receipts like incentives/commission/discount received from the manufacturer are in the nature of trading receipts as they are doing their business on principle to principle basis. The appellant relied on various case laws decided by this Tribunal and the High Courts in support of their contentions. However, in the impugned order the proposed demand was confirmed along with equal amount of penalty under Section 78 of the Act with further demand for interest under Section 75. Being aggrieved the appellant is before this Tribunal. 6. The Ld. Counsel appearing for the appellant, Shri Manish Gaur, at the outset, states that it is an admitted fact that all the receipts and transactions have been recorded in the books of account ordinarily maintained in the normal course of business. Further, admitted fact is that appellant have filed their periodical returns regularly and as such there is no element of s....
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....hich is provided by Hyundai Motors on the basis of value of spare parts sold in a month. 10. Incentive Mobis India Limited The Appellant purchases oil & lubricants from Mobis India Ltd. They provide trade discount on the basis of amount of lubricants purchased from this company. Such income is booked under this head. 11. Incentive Shell India Markets (P) Ltd. The Appellant purchases oil & lubricants from this company. They provide trade discount on the basis of amount of lubricants purchased from this company. Such income is booked under this head 12. Incentive-Dupont India P. Ltd. The Appellant purchases paints from this company. They provide trade discount on the basis of amount of paints purchased from this company. Such income is booked under this head 13. Incentive Corporate According to the scheme of Hyundai Motors if the new customer is employed in the new customer is employed in the specified companies then he is eligible for corporate discount. When the discount is provided to customer it is treated as an expense and when Hyundai reimburses the amount it is shown as income under this head. 14. Incentive-Exchange According to the....
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....of sales turnover of different models during the subject period so as to support its claim about the nature of such incentives being in the nature of trade discount based on the performance of sales of products with respect to targets fixed/achieved. The Ld. Commissioner also have observed and taken note of the standard provisions of the agreement dated 10/04/2006, which is between the appellant-assessee and the manufacturer- HML wherein the narration part, it is stated - Dealer is an integral part of a network, authorized Hyundai dealer is dedicated to the vigorous and effective promotion and sale of Hyundai products. Accordingly, dealer agrees to use its best efforts to effectively promote and sell Hyundai products to customers in dealers' territory and also achieve the targets and market share fixed by HMI from time to time. 10. Accordingly, it was concluded by Ld. Commissioner that all these receipts are in the nature of business Auxiliary Service, as well as, some receipts are under the category of 'Authorized Service Station' and accordingly taxable. It was further observed that it is not disputed that the receipts in question are incentives under DRF and HMIL schemes, but....