2018 (9) TMI 87

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed two contentions before us. One regarding the maintainability of the appeal under Section 35G of the Central Excise Act, 1944 ('Act' for short) which provision enables an appeal under the Finance Act, 1994 as per Section 83 thereof. The argument is that the issue raised being one of classification, there could be no appeal before the High Court and the same would have to be challenged before the Honourable Supreme Court under Section 35L of the Act. The learned counsel for the respondentdealer also would place reliance on 2014 (300) ELT 217 (Ker.) [CCE, C&ST, Thiruvananthapuram v. Kerala State Beverages] and 2016 (44) STR 204 (Ker) [CCE, ST&C, Cochin v. Al-Hussam India Hajj & Umrah Services Management]. The second contention advanced is t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... rendered by the assessee; in which event it would be exigible to service tax. 4. On facts, it is to be noticed that the respondent herein is a dealer of motor vehicles. The specific transaction which comes up for consideration before us has a direct nexus with the dealership of the manufacturer of motor cars, specifically Maruti Udyog Limited. Maruti Udyog Limited has floated two subsidiary Companies by name Maruti Insurance Brokers Limited (MIBL) and Maruti Finance Limited (MFL). The former facilitates insurance cover to new vehicles and the latter; finance for purchase of new vehicles. When the respondent sells vehicles, they also help the customers in availing finance from financial institutions for the purchase of vehicles as also obt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....indicate that the entire paper work, the remittance of amounts as also issuance of insurance and that regarding the finance availed, are done at the respondent's/dealer's initiative. This is the context in which the said transaction has been found to be assessable under the Finance Act, 1994 as service tax. The respondent-dealer however claims that they do not carry out any service, insofar as the Finance Act, 1994 is concerned, as business auxiliary service. 7. We are of the opinion that this is specifically an issue of deciding as to whether the particular transaction or the activity carried on by the respondent-dealer would result in a service to MIBL and MFL, and as a consequence, would be covered under the Finance Act, 1994 as....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e reasoning that led to the precedents cited on behalf of the respondent. 6. Learned counsel for the appellant further argued that since the rate of duty is uniform throughout India, there will be no situation of conflict of opinions between the different High Courts on any issue referable to the question of coverage. In the nature of the conclusion that we have arrived at, we are unable to accept this submission." We respectfully follow the decision and we have to notice that it answers the specific contention taken by the learned Standing Counsel as to the uniform rate being applied. The learned Standing Counsel then raised a contention as to the provision under the Act being not applicable to the Finance Act, insofar as the value of....