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2023 (10) TMI 813 - AT - Service TaxLevy of Service Tax - Appellant is an authorized dealer of Tata Motors - Sales and other incentives - Hire purchase commission - Repossession charges received by the Appellant credited under 'other charges' in the profit & loss account - Job work charges - Freight received from customers/Tata Motors. Sales and other incentives - HELD THAT:- The incentive or discount or commission received from the banks and institutions does not lead to the conclusion that the Appellant provided service to them. At the most, it may be in the nature of business support service which is not the case made out in the SCN. Accordingly, Service Tax is not payable on commission received from bank/financial institution. Hire purchase commission - HELD THAT:- Such charges are being received from the buyers of vehicles for assisting in registration/insurance etc. of the vehicles which is an essential requirement under the Motor Vehicle Act and the said receipts are not chargeable to Service Tax. Repossession charges received by the Appellant credited under 'other charges' in the profit & loss account - HELD THAT:- Demand not tenable as they are received from the owners of the vehicle, whose vehicles are repossessed by the financiers and for safekeeping are entrusted to the Appellant. For such service or parking, the Appellant received an amount from the vehicle owners which is not taxable under BAS. Further, these receipts are on principle to principle basis and on that score also are not liable to Service Tax. Job work charges - HELD THAT:- The learned Commissioner has himself held that the same is not taxable under BAS but under Authorized Service Station charge, which was not the case made out in SCN and as such the demand of service tax on these charges is not tenable. Further, the receipt for service of commercial vehicle is not taxable under the category of 'Authorized Service Station'. Freight received from customers/Tata Motors - HELD THAT:- The essential ingredient of GTA, (that issuance of consignment notes was not done by the Appellant) thus, the same cannot be made liable to Service Tax as a GTA. Accordingly, no Service Tax is payable on this score also. The impugned order set aside - appeal allowed.
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