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2018 (11) TMI 1392 - AT - Service TaxBusiness Auxiliary Services - providing financial assistance to customers and receiving commission in connection with the promotion or marketing of service provided to the client - Held that:- M/s. Maruthi Udyog Ltd. are providing services of vehicle loans to the customers of the appellant which resulting in boosting the business of the company and recognition of the said assistance rendered by the appellant, the financial institution reciprocated with commission in some percentage of loan distributed through the appellant and this activity is a clear case of promotion of services rendered by the appellant which is specifically included in the category of BAS specified under Finance Act, 1994 and are liable to Service Tax w.e.f. 01.07.2003. Such promotion of business of financial help promoted the business of the appellant also and does not alter the character of BAS. This Tribunal in the case of City Honda [2017 (10) TMI 801 - CESTAT BANGALORE] have already considered this issue in detail and has come to the conclusion that the appellants are providing the services of “Business Auxiliary Service” and therefore, liable to pay Service Tax. Further CBEC Circular No. 87/05//2006-ST dated 06.11.2006 clarified that Service Tax will be payable by the dealer on the gross amount received from the Financial Company. The liability of Service Tax against the appellants is sustained - penalty dropped by invoking section 80 - appeal allowed in part.
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