2018 (11) TMI 1392

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.... intelligence collected by the Department, it was found that the appellants were providing financial assistance to customers and receiving commission in connection with the promotion or marketing of service provided to the client or in connection with service provided to the client for providing financial assistance for purchase of vehicle from them through financial institutions. As the service provided by the appellant comes under the purview of "Business Auxiliary Services", SCN dated 12.05.2006 was issued demanding Service Tax for the period 2003-04 and 2004-05. The appellant paid the Service Tax of Rs. 4,99,717/- along with interest on 28.07.2006. The adjudicating authority vide impugned order confirmed the Service Tax of Rs. 4,99,717/....

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....mmission received from the customers who are availing finance and insurance facilities and part of the amount received by M/s. Maruthi Udyog Ltd. has been paid to the appellant and hence, the question of demanding Service Tax once again on the very same amount from the appellant does not arise. For this submission, he relied upon the following decisions: (i) Jaika Motors Ltd. Vs. CCE, Nagpur- 2014 935) STR 417 (Tri. Mum.). (ii) Silicon Honda Vs. CCEx., Bangalore- 2007 (7) STR 475 (Tri. Bang.). (iii) Pagariya Auto Center Vs. CCE, Aurangabad- 2014 (33) STR 506 (Tri. LB.). (iv) Joshi Auto Zone Pvt. Ltd. Vs. CCE, Chandigarh- 2016 (42) STR 739 (Tri. Del.). 4.1 He also submitted that the Service Tax under „BAS‟ was introduced....

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....s on this issue during the relevant time. 6. After considering the submissions of both the parties and perusal of the material on record, we find that the appellant is a dealer of car manufactured by Maruthi Suzuki and is providing service of authorized service station. Further, we find that the M/s. Maruthi Udyog Ltd. are providing services of vehicle loans to the customers of the appellant which resulting in boosting the business of the company and recognition of the said assistance rendered by the appellant, the financial institution reciprocated with commission in some percentage of loan distributed through the appellant and this activity is a clear case of promotion of services rendered by the appellant which is specifically included ....

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....es for arranging the finances. For this, they have a tie-up with Banks/ Non-Banking Finance Companies. The customers are advised by the dealers to approach such financial companies for taking loans. The automobile dealers get commission from such financial companies for directing the customers to the latter. By this activity, the automobile dealers 'promote or market the services provided by their customer (i.e., the financial institution), and are therefore covered under 'taxable service', namely, the "Business Auxiliary Service". The tax is payable on the gross commission received by the automobile dealer. In some cases, the dealers share part of their commission with their customers to attract them. However, this is an independent transa....