2025 (7) TMI 2008

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....L) For the Appellant : Shri Kuryan Thomas, Advocate For the Respondent : Mrs. Money Jain, Joint Commissioner, Authorised Representative PER : R. BHAGYA DEVI Briefly the facts are that the appellants M/s. MGF Motors Limited (MGF) are authorised dealers for M/s. Hyundai Motor India Ltd. (HMIL). The appellant entered into an agreement with HMIL for sale of cars of HMIL and based on the qu....

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....de discounts or incentives periodically based on the volume of sale of cars and spares done by the appellant as a dealer. The Revenue's contention is that the appellant promotes the cars of HMIL, is misplaced, since as an authorised dealer, the cars are purchased and sold to the end-customers. He also submits that the issue is no longer res integra in as much as it is settled by the following deci....

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....ity, hence liable to service tax under 'Business Auxiliary Service'. 4. Heard both sides. In similar set of facts in the case of Commissioner of Service Tax, Mumbai vs. Jayabharat Automobiles Ltd. (supra), the Tribunal observed as follows: "6.5 On the appeal by Revenue on the issue of incentives received by the appellant from the car dealer, we find that the relationship between the ap....

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..... Ltd. (supra), the Tribunal held as: "13. We also find that the activity undertaken by the appellant is for the sale and purchase of the vehicle and the incentives are in the nature of trade discounts. The incentives, therefore form part of the sale price of the vehicles and have no correlation with the services to be rendered by the appellant. That in terms of the dealership agreement, ....