TaxTMI 
TaxTMI 
TaxTMI 
2025 (5) TMI 1996
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....s received from HMI, cancellation charges of booking made by customers for purchase of motor vehicles and commission received from banking and other financial institution for processing of loan etc., the Officers of DGGI, Meerut Zonal Unit, initiated an enquiry against the Appellant in regard to the above matters. At the end of investigation, it was found that the Appellant had not paid Service Tax during the period from October, 2013 to June, 2017 on the amount of incentives/discounts received from HMI and cancellation charges collected from customers subsequent to booking of motor vehicle and commission collected from banks etc for facilitating loans. The investigation culminated into issuance of Show Cause Notice SCN dated 16.04.2019 for demand of Service Tax of Rs.1,34,60,732/- along with interest and penalty under Section 76, 77 & 78 of the Finance Act, 1994. The SCN was adjudicated by the Joint Commissioner, CGST, Meerut and the demand was confirmed vide Order-in-Original No.43/JC/ST/Noida/2020-21 dated 27.01.2020 along with interest and imposition of equal penalty. Being aggrieved with the said Order, an appeal was filed before the Commissioner (Appeals), CGST, Noida. The Co....
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....from the Cenvat credit balance lying in their account as on 30.6.2017. 7. On the issue of imposing equivalent penalty, the Ld. Chartered Accountant argued that there was no suppression, collusion, willful misstatement with the intent to evade payment of Tax on the part of the Appellant. All transactions were honestly disclosed before the Department. Hence, he submitted that no penalty should have been imposed on the Appellant. 8. Learned Departmental Authorized Representative Shri A. K. Choudhary re-iterated the findings of the Commissioner (Appeals) and emphasis that differential demand is liable to be confirmed along with interest and penalty. 9. Heard both the both sides and perused the appeal records. 10. We find that main issues for our consideration in this case are as under : - (i) Whether Service Tax was chargeable on the cancellation charges collected by the Appellant from customers who cancelled their booking for purchase of cars; and (ii) Whether it is a case of revenue neutrality. 11. We find that cancellation charges were collected from customers who booked cars for purchase but later on requested to cancel the booking. The Appellant sells cars and when bookin....
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....he contract but that would not necessarily mean that this value would form part of the value of taxable services that are provided. 28. It is also necessary to remind ourselves that the word "include" is generally used in interpretation clauses to enlarge the meaning of the words or phrases occurring in the body of the statute and when it is so used, such words or phrases must be construed to comprehend, not only such things as they signify according to their natural import, but also those things which the interpretation clause declares that they shall include. This is what was stated in Dilworth v. Commissioner of Stamps [1899 AC 99]. 29. Justice G.P. Singh in "Principles of Statutory Interpretation" (Thirteenth Edition) has also remarked that where a word is defined to "include" such and such, the definition is prima facie not exhaustive and so the natural meaning of the word cannot be narrowed down by the "includes" part. 30. In this connection it would also be pertinent to refer to TRU Circular dated 20 June, 2012 issued by the Central Board of Excise and Customs as an Education Guide when the Negative List based taxation regime was introduced to clarify various aspects o....
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....emature termination of the loan advanced by them as it is in their interest that the loan runs the entire agreed tenure for the banks thrive on interest earned from lending activities. As premature termination of a loan results in loss of future interest income, the banks charge an amount for foreclosure of loan to compensate for the loss in interest income. It is the customer who has taken the loan, who moves for foreclosure of the loan by making the payment of the loan amount before the stipulated period and thereby breaching the promise to service the loan for the agreed period of time. This results in a unilateral act of the borrower in repudiating the contract and consequently breach of one of the essential terms of the loan agreement. A breach of contract may give rise to a claim for damages. Xxxxxxx xxxxxx xxxxxx 40. Section 74 of the Contract Act which deals with compensation for breach of contract where penalty is stipulated also needs to be referred to. It is reproduced below; "Section 74. Compensation for breach of contract where penalty stipulated for. - When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such bre....