TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 990
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....r. 2. The appellant being the holder of Service Tax Registration No. AABCP2035QST010 is the authorised dealer of M/s Maruti Suzuki India Ltd. ( hereinafter referred to as MSIL). That by virtue of a dealership agreement dated 01.01.2016 they were engaged as dealer for sale-purchase and also for providing services of maintenance and repair of vehicles. 3. Based upon an intelligence regarding non payment of service tax in relation to payments received as incentive / discounts reimbursements which were in the nature of consideration for service, an investigation was initiated against the appellant. Accordingly, Show Cause Notice dated 12.4.2019 was issued to the appellant proposing recovery of Rs. 1,24,12,438/- along with interest under....
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....issued on 12.4.2019 covering the period from April 2013 to June 2017 and hence the same is barred by time. 7. The authorised representative for the revenue has supported the findings of the authorities below. 8. The issue which arises for our consideration is whether service tax is leviable on incentives / discount reimbursement extended by MSIL to the appellant. 9. The issue is no longer res integra and as referred to by the Learned Counsel for the appellant the same has been considered and decided in favour of the assessee in the following cases: (i) Rohan Motors Limited vs. Commissioner of Central Excise [2021 (45) GSTL 315 (Tri-Del.)] (ii) TV Sundram Iyengar & Sons Pvt Ltd. vs. Commissioner of CGST & C.EX. Madurai [2021 (5....
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....erformance of sale grants the discount to the dealer, this discount is nothing but a discount in the sale value of the vehicle sold throughout the year therefore these sales discount in the course of transaction of sale and purchase of the vehicles hence, the same cannot be considered as service for levy of service tax." 11. The Larger Bench of this Tribunal in the case of Kafila Hospitality and Travels Pvt Ltd (supra) dealt with the issue whether service tax can be levied under the category of 'Business Auxiliary Service' on target based incentives paid to the travel agents by the Airlines as they were promoting and marketing the business of the Airlines. The Tribunal took the view that it is not a case where the air travel agent ....
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....ision of the Federal Court is reproduced below:- 53. On analysis, the so-called supplies for consideration identified by the Commissioner are nothing more than the encouragement of an overall business relationship between the manufacture and the dealer to the mutual benefit of both. The relationship involves a whole raft of obligation from one to the other all, presumably, with the ultimate objective of maximizing their respective commercial positions. As the AP Group put it, the overall relationship contemplates a continuing dialogue between wholesaler and retailer in which promises are routinely exchanged, but to characterize this dialogue as involving supply after supply is unrealistic and impractical. To characterize the payment of th....
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....L is engaged in manufacturing, marketing and selling of motor vehicles and the appellant purchases the vehicles from the manufacturer as their authorised dealer on principal to principal basis. The relevant clause is quoted herein below: " C. MSIL having considered the representations made and the application submitted by the Dealer agrees to appoint the Dealer as the Authorised Dealer. It is made clear that MSIL would sell the products and parts to the dealer on principle to principal basis. The dealer would sell the products and parts and would provide service to the customers (which would include, but not be limited to, the service in terms of the warranty as per the owner's manual provided by MSIL from time to time) which promotes....