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2021 (9) TMI 534 - AT - Service TaxLevy of service tax - Business Auxiliary services or not - discount allowed by the supplier of goods for sale to corporate customers - commission from banks and financial companies and on payments received for insurance referral - penalty - extended period of limitation - HELD THAT:- The dispute pertaining to discount offered to corporate customers has attained finality. In this connection, the decision of the Tribunal in TOYOTA LAKOZY AUTO PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX/CENTRAL EXCISE MUMBAI -II / MUMBAI - V [2016 (12) TMI 541 - CESTAT MUMBAI] which has referred to the other two decisions, observing that discounts offered by car manufacturers to their dealers for onward transmission to corporate customers is not liable to tax as ‘promotion or marketing or sale of goods produced or belonging to clients’ within the enumeration of ‘business auxiliary service’ in section 65(19) of Finance Act, 1994. - the demand of ₹ 3,70,994/-, along with interest, and penalty under section 78 of Finance Act, 1994 fails to survive. Commission from banks and financial companies and on payments received for insurance referral - penalty - HELD THAT:- Appellant has admitted and discharged liability arising on receipt of ‘commission’ from financial institutions and insurance companies - reliance placed in the decision of the Tribunal in re Addis Marketing, the exposition of the Tribunal in GEMINI MOBILES PVT LTD, SUNNY MOTORS PVT LTD VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, LUCKNOW [2015 (8) TMI 1137 - CESTAT ALLAHABAD] which examined several aspects for arriving at the conclusion of circumstances not being conducive to invoking of section 78 of Finance Act, 1994 is relevant. Penalty - Extended period of limitation - HELD THAT:- In view of the circumstances and the stand taken by the Tribunal in these several decisions, invoking of the extended period for the purpose of imposition of penalty is not sustainable. Accordingly, the penalty imposed under section 78 of Finance Act, 1994 is also set aside. Appeal disposed off.
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