TMI Blog2014 (4) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... ecomes totally a transaction of purchase and sale of old vehicles - activities are undertaken as value addition by them and it is neither for the seller nor the purchaser. It is an activity undertaken to increase the value of the vehicle so that they get the maximum return out of it. Therefore we cannot say that there is a service element in this transaction either. As regards the invoices produced before us there is no clarity being there as to whether the Commissioner has seen these documents - In any case there is no observation saying that the vehicles were not sold under an invoice by the appellants - appellants have made out a case in their favour completely - Decided in favour of assessee. - ST/28543/2013-DB - Final Order No . 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lace only between the owner of the old car and the buyer of the old car and the appellant is only acting as an intermediary. However, she submits that the only ground taken by the Revenue for treating the transaction as a service is that the registration has not changed in the name of the appellant. The sales transaction according to the Revenue is between the old owner and the new buyer. However, she submits that according to Sale of Goods Act, for transfer of property, registration is not relevant. According to Sale of Goods Act, the property can be sold even without transferring the registration especially in relation to vehicle. She also submits that the Commissioner has relied upon certain decisions which relate to immovable property a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect. As regards the documents submitted by the appellants along with the appeal memo, he submits that no doubt, there are some documents produced to show sale of old vehicles to their customers. In the absence of any clarity as to whether the same documents produced before us, were produced before the Commissioner by the appellants, it cannot be said that these invoices reflect the correct position and therefore the matter may have to be remanded so that the Commissioner can take note of the documents submitted at this stage and decide the issue. 5. Learned A.R. submitted that in the case of old cars there are two transactions of sale. However, the appellants have produced proof only in respect of sale made by them to the customers. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssession of the vehicle, RC Book, Insurance documents etc. in Original. At the time of taking delivery, they obtain signatures on blank Form-29 and Form-30 as prescribed in the Motor Vehicles Act, for transfer of ownership of vehicle. After refurbishing and carrying out the required works as instructed by MSIL at their workshop, they display the vehicle at their used car show room, find a buyer and sell the same on a reasonable margin. The selling price includes management fees, free services and warranty. It is observed that their executives/representatives are engaged in doing first level of scrutiny of prospective buyers, i.e. identifying such clients who could then be pursued further for the deal, if the terms and conditions are agreeab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-transfer of registration at the time of transferring possession of the old vehicle by the owner cannot be considered as a sale as held by the Commissioner or not. In this connection, we find that the decision of the Hon ble High Court of Kerala relied upon by the learned counsel is applicable to the facts of this case. Hon ble High Court of Kerala in para-15 has made the following observations which in our opinion is relevant and therefore is re 15. It is quite surprising and shocking to note that the lower Court had noticed that Ext. B5 cannot be accepted because it is not registered and sufficiently stamped as required under the Registration Act and Transfer of Property Act. It appears that the lower Court has omitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned by it. 7. As can be seen, the observation are very clear and for considering a transaction as to whether it is a sale or not, what is required to be seen is not the aspect of registration but whether the price has been received and the property has been delivered or not. In this case, as observed by the Commissioner himself in paragraph 55, the property is delivered and the price has been received by the seller of the old car. Therefore, the first transaction cannot be considered as the one which is not a sale. There is no doubt as to the second transaction whether it is a sale or not. once the first transaction is considered as sale it means that the vehicle has been purchased by the appellant subsequently sold by them. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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