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2023 (6) TMI 243 - CESTAT CHENNAILevy of Service Tax - Business Auxiliary Services - reimbursement of advertisement charges from M/s. Maruti Udyog Ltd, and M/s. Sundaram Finance Ltd, for various promotional activities - HELD THAT:- The very same issue was analysed by the Tribunal in the case of M/S. ROHAN MOTORS LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, DEHRADUN [2020 (12) TMI 1014 - CESTAT NEW DELHI] where it was held that the appellant purchases vehicles form MUL and sells the same to the buyers. It is clear from the agreement that the appellant works on a principal to principal basis and not as an agent of MUL. This is for the reason that the agreement itself provides that the appellant has to undertake certain sales promotion activities as well. The carrying out of such activities by the appellant is for the mutual benefit of the business of the appellant as well as the business of MUL. The amount of incentives received on such account cannot, therefore, be treated as consideration for any service. The incentives received by the appellant cannot, therefore, leviable to service tax. Following the above decision which is squarely applicable to the facts of the case, it is held that the incentives received by the appellant cannot be subject to levy of service tax under the category of Business Auxiliary Services. Business Auxiliary Services - reimbursable expenses received by the appellant from M/s. Maruti Udyog Ltd. and M/s. Sundaram Finance Ltd. - HELD THAT:- As per the annexure to the Show Cause Notice is seen that these are nothing but reimbursement of expense for advertisement. The Honourable Supreme Court in the case of Intercontinental Technocrats Ltd. [2018 (3) TMI 357 - SUPREME COURT] has held that the reimbursable expenses cannot be subject to levy of service tax. The decision relied by the Ld. AR for the Department has not considered the decision of the Hon’ble Apex Court and hence not applicable. The demand cannot sustain and requires to be set aside - Appeal allowed.
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