2022 (8) TMI 1254

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....e appellant is an authorized dealer for trading of passenger and commercial vehicles of Tata Motors Ltd. ("TML"). The appellant buys vehicles from TML, (Tata Motors Ltd.,) for further sale to the buyers by virtue of a dealership agreement dated 11.10.2011, entered into between Tata Motors Ltd., and the appellant. Under the said agreement, the appellant receives discounts from TML, which are referred to as "incentives" and "Discount support" under the schemes, which are issued in the beginning of the month. The Department has sought to levy service tax on the 'incentives' and 'discount support' received by the appellant under the category of "Business Auxiliary Service" being consideration for sales promotion activity for the manufacturer (T....

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...., Learned Authorized Representative of the Department have been considered. 6. The sole issue that arises for consideration is whether service tax would be leviable on incentives and discount support extended by the manufacturer of vehicles, to authorized dealer - appellant for the period July, 2012 onwards. 7. It is noticed that the appellant purchases vehicles from TML and sells the same to the buyers. It is clear from the agreement that the appellant works on principal to principal basis, and not as an agent of TML. This is for the reason that the agreement itself provides that the appellant has to undertake certain sales promotion activities as well. The carrying out of such activities by the appellant is for the mutual benefit of the....

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.... of Business Auxiliary Service. By taking the above view, show cause notice dated 17-10-2011 was issued covering the period 1.4.2006 to 31.3.2011. Further, show cause notice dated 9-10-2012 was issued covering the period 1-4-2007 to 31-3-2012. The proceedings initiated under the above show cause notices resulted in the issue of two impugned orders, which are under challenge in the present appeals. Since the issue involved is common, these appeals are disposing of with this common order. The demands have been raised by Revenue through the two impugned orders covering overlapping periods. Demand has been made under the category of Business Auxiliary Service for the amounts received by the appellant from M/s. MUL. Such amounts have been rece....

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....ion has been received for provision of furniture to ICICI for facilitation of accommodating representatives in the premises of the appellant for selling insurance policies for cars. Such an activity cannot be considered under BAS as has been held by the Larger Bench in the case of Pagadiya Auto Centre (supra). Consequently, we set aside the demand of Service Tax on such commission received. 7. A portion of the demand also has been raised under the category of GTA. The appellant has paid the freight expenses in connection with transportation of Cars to their customers. However, they have not issued any consignment notes which are necessary to identify the appellant as a goods transport agency. As per the views expressed by the Tribunal in ....