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2018 (3) TMI 416 - AT - Service TaxLiability of service tax - agreements with various financial institutes including banks and general insurance companies to expand sale of their cars - Business auxiliary services or not? - the Department's case is that appellants, for arranging vehicle loans and vehicle insurance from Maruti Finance and Maruti Insurance to their customers, are getting commission amounts from the said companies and hence they are promoting or marketing the business of those companies and receiving in lieu commission - appellants contend that as dealers of MUL, they are only providing services on behalf of the clients i.e. MUL and that they have not entered any agreement with the financial institutions/banks and hence there can be no service tax liability. Held that: - MUL receive 3.5% commission from the financial institutions out of which 3% is passed on to the dealer. Adjudicating authority has concluded that the fact of commission routed through MUL is of no consequence in view of Section 67 of the Act as value for any taxable service shall be the gross amount charged by the service provider for taxable service rendered by him to his client and that it is nowhere provided that money should flow directly from the service recipient. In the case of CCE, Jaipur vs. Ajmer Automobiles Pvt. LTd. [2012 (8) TMI 535 - CESTAT, NEW DELHI], on similar issue, the Tribunal has held that since MUL had paid the service tax on the entire commission, in such cases, tax is not payable again for the same amount. Appeal allowed - decided in favor of appellant.
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