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2015 (11) TMI 229 - AT - Service TaxDemand of service tax - Business Auxiliary Services - appellant received some amount from various financial institutions as commission for marketing of Auto Loan products and also an amount from manufacturers of car under the head Target Incentive Scheme - Imposition of penalty - Invocation of extended period of limitation - Held that:- confirmation of tax liability under this head is upheld along with interest. Since the issue of whether such amount received by an assessee from financial institution for promoting the products like auto loan etc, would be taxable or not, has been settled by the Larger Bench [2014 (2) TMI 98 - CESTAT NEW DELHI (LB)], we find that the appellant could have entertained a bona fide impression that such amounts received as commission are not taxable. Accordingly, by invoking the provisions of Section 80 of the Finance Act, 1994, we set aside the penalties that are leviable on this count. Taxability of amount received and for achieving the target under Target Incentive Scheme - Held that:- Appellant had been given targets for specific quantum of sale by the manufacturers of the cars. As per the agreement, on achievement of such target and in excess of it, appellant was to receive some amount as an incentive. Service Tax liability confirmed against the appellant on the amount received as incentive for achieving the targets under Business Auxiliary Services is unsustainable and liable to be set aside - Decided in favour of assessee.
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