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2018 (6) TMI 1430 - AT - Service TaxLiability of Service Tax - incentives received from M/s Hyundai Motors India Ltd. (HMIL) and pre-delivery inspection (PDI) Charges - Held that - The incentives are in the form of trade discounts to the appellants and hence cannot be termed as any provision of service rendered by the Appellants to M/s. HMIL. Hence there is no reason to demand service tax on the said incentive amount - demand set aside. PDI charges - Held that - The pre-delivery inspection is conducted by the dealer on his own in respect of vehicles purchased from HMIL while handing over the vehicles to their customers - It is undisputed that the appellant has not received any separate amount from the manufacturer / customer for the same and the cost is incurred out of their profit margin earned on trading of the vehicles. As the value of the same is already included in the value of vehicles sold no service tax is leviable on the cost of the PDI Charges - demand set aside. Appeal allowed - decided in favor of appellant.
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