2024 (8) TMI 599

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....I-SVTAX-000-APPEALS-I-358-2015-16 30/11/2015 ST/70229/2016 NOI-SVTAX-000-APPEALS-I-365-2015-16 30/11/2015 1.2 As the issues involved in both the appeals are common both have been taken up for consideration together. 2.1 The Appellant is an Authorized Service Station of Maruti Udyog Limited and is engaged in providing various types of services to the Purchaser of Maruti vehicles either on behalf of Maruti or on their own-shelf. They are registered under the category of 'Authorized Service Station'. 2.2 During the course of audit of the Appellant for the period from 2007-08 to March 2012 it was observed that the Appellant have received certain amounts under the category of 'Miscellaneous Income' and they have not paid any service tax i....

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....he Original Authority and Appellate Authority we find that the demand has been made by referring to certain incomes reflected in the ledger of the Appellant. However, show cause do not specify the source of income i.e. the person who has made these payments to the Appellant i.e. demand stands made without specifying the service recipient. For the period prior to 2012 taxable service for business auxiliary service was defined as under:- "Taxable service means any service provided or to be provided to a client. by any person in relation to business auxiliary service" The definition itself contemplates that service should be provided to an identified client and consideration should have been received from the said client or on his behalf. I....

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....the service recipient it is not tenable to hold an income of the appellant even if it is admitted to be an actual income, as consideration for a taxable service. The minimum requirement to tax an assessee for service tax is to identify the nature of their taxable service alongwith the recipient of such service. In the present case all identified contracts for the identified service recipients have been examined and concluded by the lower authority. No service tax liability can be fastened on unidentified service for unidentified service recipient. There is no provision for such summary assumption even under Section 72 of the Finance Act, 1994. Admittedly, the said section provides for arriving at the taxable value to be based of the Assessi....

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....ted 11.01.2024 in Service Tax Appeal No.42480 of 2014]. "5. In regard to 'Business Auxiliary Service' and 'Technical Inspection and Certification Service', the contention of the appellant is that the appellant has made certain deductions in the invoices raised to M/s. Bonprix, Germany, which are only discounts in a transaction of sale. M/s.JPS Trading, Dubai arranges for procuring the goods from the appellant to M/s.Bonprix, Germany. M/s.JPS Trading conducts quality test for export of the garments through their agent (Fashion Force, Tiruppur) situated in India. It is thus assumed by the department that the deductions made in the invoice price is towards commission and towards furtherance of business of the appellant rendered by M/s.JPS Tr....