2009 (1) TMI 172

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.... Savith V. Gopal, Adv. for Appellants. Shri R.P. Meena, SDR for Respondent. Per P. Karthikeyan : The appellants M/s. Pillai & Sons Motor Company (P & SMC) are an authorised dealer of M/s. Maruti Udyog Ltd. (MUL) and sell various models of vehicles manufactured by MUL. During the period 2002-03 to 2005-06 (upto Dec.'05), the appellants were found to have rendered service falling under the catego....

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....ed service stations for free services rendered in respect of first three services in respect of vehicles sold by them and where no charges were collected on that account. It is argued that the tax is demanded on the margin earned by then on sale of the vehicles as they collected no charges for the first three services. As they had paid sales tax on this margin no service tax was leviable in additi....

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.... on services, which is also levied by the Centre. The impugned amount in question is a part of the dealers' margin which has been recovered by the appellants as part of the sale value of the cars from the customers and the entire amount has been subjected to sales tax by the concerned State Government authorities. When the appellants sold the cars and recovered the amount including the dealers' ma....