TaxTMI 
TaxTMI 
2026 (6) TMI 260
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....der-in-Appeal No.207 & 208/2015-16 dated 29.10.2015 passed by the Commissioner (Appeals-III) Cochin. 2. Briefly the facts are the appellant who is providing services under the category of 'Authorised Service Station Service' renders free services for the vehicles sold by them. The appellant being the authorised dealer for M/s. Maruthi Suzuki India Ltd. (MSIL) as per the dealership agreement provides free services to the customers who purchased the vehicles from them. According to the Revenue, the dealers margin received by them has hidden element of consideration received for free services rendered by them; hence, they are liable to pay service tax. With regard to warranty income received by the appellant for the spares/accessories consu....
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....4 (388) ELT 374 (Tri. Bang.). 3.1 With regard to insurance commission, it is submitted that the appellant receives a portion of the commission from Maruti Insurance Brokers Ltd., (MIBL) and Maruti Finance. It is his submission that this issue has been settled in their own case by the Tribunal as reported at 2010 (18) STR 493 (Tri. Bang.) and he submits that the appeal filed by the Revenue before the Hon'ble High Court of Kerala was dismissed vide order dated 20.07.2018. He also submits that when the issue was already known to the department much earlier as seen from the above order, the question of invoking extended period of limitation does not arise; hence, the impugned orders need to be set aside. 4. The Authorised Representative (....
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....being worked under the concept 'separate profit centre' and corresponding expense is accounted in Head Office books and thereby net income is ZERO. Further it is also held that no service tax can be levied on amounts representing the dealer's margin or any part of it which was already subject to sales tax. I further note that the Department has not filed appeal against the order which has attained finality and further I find that the Commissioner (Appeals), Cochin in Order-in-Appeal Nos. 352 to 356/2013 has also allowed the appeal of the assessee and held that no service tax is due on free services and warranty service and set aside the order of demand on free service. In view of the various orders where the Department itself has dropped th....
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....te service. 7. We note that MUL has conceptualized the insurance and finance schemes for its customers and has entered into agreements with insurance company and finance companies/banks for the purpose. Through the dealers of maruti vehicles, the buyers of such vehicles are persuaded to avail the services of entities with whom MUL has an arrangement. MIBL/MUL receives commission for sale of policy by NIC and promotion of grant of loans by finance companies. MIBL/MUL renders IAS to NIC and BAS to select finance companies. Unless the dealers suggest to its customers to approach these companies, the purchasers of cars may avail the same services from any of the several providers of such services in the market. Apart from this the appe....
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....ompanies to buyers of maruti vehicles is also similar as regards the facilitation rendered by the appellants. In both the cases, the appellants earned the commission obviously for its role in MIBL/MUL providing their respective services. We find that it was the clients of MIBL/MUL that received those services which promoted the sale of insurance by NIC and sanction of loans by finance companies. The appellants or MIBL/MUL did not render any other service which promoted sale of insurance by NIC and sanction of loans by finance companies. MIBL paid tax on commission received under IAS. MUL paid tax on commission received for enabling banks/finance companies grant loans to customers of the appellants under BAS. MIBL/MUF paid a part of their co....