TaxTMI 
TaxTMI 
2023 (9) TMI 66
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....s of the manufacturers Maruti, under a 'Dealership Agreement'. A Show Cause Notice dated 16.10.2008 was issued to the Appellant on the ground that they have rendered promotional or marketing activities for the finance companies by providing space in their premises and helping them to provide auto loans to customers. The department considered the consideration received by them as the value of taxable service rendered as 'Commission Agent' and liable to service tax under the category of 'Business Auxiliary Service', w.e.f.16'06'2005. Accordingly, the Notice demanded service tax of Rs. 1, 78, 87, 178/-, for the period 2003-04 to 2007-08 . The Notice was adjudicated and the demand of service tax of Rs.1, 78, 87, 178/- was confirmed, under the c....
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....ndertaking any of the above activities and hence cannot be considered as 'commission agent'. In fact, there was no agreement between appellants and the banks for provision of such services. 3. The Appellant stated that they were merely providing space to the financial institutions / banks in their premises and consideration received for the same cannot considered as amount received towards rendering of Business Auxiliary Service. 4. The Appellant cited Board's Circular No. 87/05/2006-ST dated 06.11.2006, where para 4 of the Circular states that the automobile dealers when help buyers of the vehicle for arranging finance and that the dealer have tie-up with Banks/ Non-Banking Finance Companies. This activity is considered as to promote....
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.... of penalty is also not valid. Reliance is placed on the following judgments; i. Aadhshwar Motors Pvt. Ltd., [2011 (24) STR 81 (Tri.-Ahmd)] i. Ved Automotives [2016 (44) STR 140 (Tri.-All.)] (i) Autobahn Enterprises Pvt. Ltd., [2022 (56) GSTL 312 (Tri.- Bom.)] (ii) Sanghi Finance & Investment Ltd, [2022 (65) GSTL 95 (Tri.- Del.)] 8. The commission so received by the appellant was not taxable under BAS. If at at all there was a liability, it could be taxable under the category of "Support services in relation to business or commerce" (BSS' here after) as defined in Section 65(105)(zzzq) of the Finance Act, 1994. Thus, it would at best be taxable w.e.f. 01.05.2006 which they have already paid. Reliance i....
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.... agent . 12. We observe that the issue has already been settled by the decision of the Larger bench of Tribunal in the case of 'Pagaria Auto Centre' with identical facts, wherein it was held that providing space to finance institutions by Auto companies would not be liable to service tax under the category of BAS. For determining a service to be Business Auxiliary Service or not, certain principles were laid down by the Tribunal vide order dated 12.09.2013 reported in 2014 (33) STR 506 (Tri.-LB). Extract of the relevant para is reproduced below: "20. On a consideration of the apparent conflict of opinion in the decisions mentioned in the order of reference and the other decisions which were cited at bar, it is clear that no unif....