TaxTMI 
TaxTMI 
2026 (2) TMI 1338
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....er-in-Original No. Commr(A)/04/2021-22 dated 01.09.2021 passed by the Commissioner (Appeals) of Central Tax, Appeal-II, Delhi wherein the Commissioner had confirmed the service tax demand of Rs. 1,92,26,093/- along with appropriate penalties. 2. The appellant was registered under the provisions of the Finance Act, 1994 with Service Tax Registration No. AADC7132RST001 for providing taxable services including Business Auxiliary Service, Business Support Service, Repair and Maintenance Service and allied services. The appellant discharges service tax on consideration received towards commission from financial institutions for facilitating vehicle financing, commission from insurance companies for arranging vehicle insurance, income from ext....
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....- along with applicable interest under Section 75 b) Imposed an equivalent penalty under Section 78, c) Imposed penalty of Rs. 10,000/- under Section 77; d) Dropped penalty under Section 76; and e) Imposed penalty of Rs. 1,00,000/- upon Shri Kuldeep Singh (Appellant No.2) under Section 78A. The Appellant preferred an appeal before the Commissioner (Appeals), GST, New Delhi, which has been rejected vide Order-in-Appeal No. Comm(A)/04/2021-22 dated 01.09.2021. Hence the present appeal. 3. Both sides agree that the issue is no longer res integra and had been decided by the Tribunal in several decisions. Ld Counsel contended that the appellant is not liable to pay service tax on the incentives/discounts....
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....) Reliable Automotive Private Limited v. Commissioner of CGST and Central Excise, Mumbai- 2024 (4) TMI 66 - CESTAT Mumbai, v) M/s Bimal Auto Agency v. Commissioner of CGST and CX, Dibrugarh Commissionerate- 2023 (6) TMI 1082 - CESTAT Kolkata, vi) Rohan Motors Limited v. Commissioner of Central Excise, Dehradun- 2021 (45) G.S.T.L. 315 (Tri. - Del.), vii) Jubilant Motor Works (South) Pvt. Ltd. v. The Commissioner of GST & Central Excise, Chennai- 2024 (2) TMI 819 - CESTAT Chennai, viii) T.V. Sundaram lyengar & Sons Pvt. Ltd. v. Commr. Of CGST & C.Ex., Madurai- 2021(55) G.S.T.L. 144 (Mad.), ix) M/s Roshan Motors Pvt. Limited v. Commissioner of Central Excise and Customs, CGST, Jaipur- 2022 (8) TMI 1....
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.... the fact is not under dispute as the appellant being a dealer purchase the vehicles from M/s Maruti Suzuki India Ltd and subsequently sell the same to various customers. The transaction between M/s Maruti Suzuki India Ltd and the dealer and subsequently sale transaction between the dealer and the end customers are purely on principle to principal basis. The vehicle manufacturer M/s Maruti Suzuki India Ltd. on the basis of yearly performance of sale grants the discount to the dealer, this discount is nothing but a discount in the sale value of the vehicle sold throughout the year therefore these sales discount in the course of transaction of sale and purchase of the vehicles hence, the same cannot be considered as service for levy of servic....
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....ss Auxiliary Service for the amounts received by the appellant from M/s. MUL. Such amounts have been received towards incentives/discounts in connection with the sale of the vehicles manufactured by MUL. In addition, certain amounts have also been received by the appellant towards Registration/ Number Plate etc. to facilitate the buyers of vehicles. All the above amounts have been charged under BAS. Certain amount of Service Tax has also been demanded under the category of GTA in respect of freight paid by the appellant towards transport of vehicles from their dealership to the customers' premises." 7. The Tribunal placed reliance on an earlier decision of the Tribunal in Toyota Lakozy Auto Pvt. Ltd. v. Commissioner Service Tax, Mumbai -....