2025 (3) TMI 431

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.... orders of adjudicating authority is modified to the extent that the demand of service tax on 'sale of spares, accessories & oils are set aside. However, the demand on labour income and target incentive is confirmed. Levy of penalty is accordingly also modified" 2.1 The appellant was providing taxable services viz- Business Auxiliary Service, Authorised Service Station Services etc. 2.2 During the course of audit it was observed that appellant was not discharging their tax liability properly. 2.3 Show cause notice dated 16.12.2019 was issued to the appellant asking them to show cause as to why- "(i) Service Tax amounting to Rs.89,67,101/- for the period from April, 2017 to June, 2017 should not be demanded and recovered fr....

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....quivalent to 10% of the confirmed demand of the service tax amounting to Rs. 89,67,101/- upon the party under Section 76 of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017. (iv) I also impose a penalty of Rs.10,000/- (Rupees Ten Thousand only) under Section 77 of the Finance Act, 1994 on the party for contravention of rules and provisions of Act read with Section 174 of the CGST Act, 2017." 2.5 Aggrieved appellant have filed appeal before Commissioner (Appeals), which has been dismissed as per the impugned order referred in para-1 above. 2.6 Aggrieved appellant have filed this appeal. 3.1 Learned Counsel for the appellant through letter dated 07.02.2025 has requested for adjournment. I have heard Smt Chit....

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....confirmation of Service Tax to the tune of around Rs.30,69,692/-. 3. Both the issues stand covered by the precedent decisions of the Tribunal. Reference can be made to this Bench's decision in the case of Tanya Automobiles Pvt.Ltd. v. Commissioner of Central Excise & Service Tax, Meerut-I [2016 (1) TMI 704 -CESTAT ALLAHABAD], wherein it was held by relying upon precedent decisions that the value of the parts used during the course of repair of the services would not represent the value of the services, so as to require their addition in the value of the services. Similarly the incentives received from Maruti Udyog for achieving targeted sale were held as not to be part of the value of the services. To the same effect is the another....