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2018 (6) TMI 1830 - MAHARASHTRA APPELLATE TRIBUNALValuation - registration Charges, insurance Charges, handling charges received and paid on behalf of the customer of a motor vehicle, form part of the sale price, of such motor vehicle or not - Incentive and discount, received from the automotive manufacturers form part of the "sale price" or needs to be treated as a "sale price" of the motor vehicle sold to the customer or whether it results in reduction of set off? - claiming set off, on purchased motor vehicle and used it as "Demo Vehicles", irrespective of the fact that such vehicle continuing to be "stock-in-trade" or not being treated as "capital asset" in the books of accounts of the Applicant - Whether the prayer of prospective effect, considering the fact that the decision of the Hon. High Court of Judicature at Bombay in the case of Sehgal Auto riders Private Limited [[2011 (7) TMI 55 - BOMBAY HIGH COURT]] was rendered on 11th July, 2011 and whereas the decision of the Hon'ble Supreme Court of India in the case of K.T.C. Automobiles [[2016 (1) TMI 1046 - SUPREME COURT]] was rendered only on 29th January, 2016? Registration charges and hand selling charges - HELD THAT:- On going through the factual position, proforma invoice, and sale contract and seen that the property, particularly possession of a motor vehicle passes or can pass legally to the purchaser only after obtaining valid registration under the Motor Vehicles Act and the purchaser gets entitled to use the vehicle in public places. It is also seen that after complying the stipulated condition to make vehicle road worthy, only the property in goods passes legally to customer. Moreover, the registration charges are recovered for making the road worthy to comply the stipulated condition and statutory compulsion before ascertainment of goods or delivery of the Motor Vehicles and therefore would be included in the meaning of 'sale price' under Section 2(25) of the MVAT ACT, 2002 - all charges related, charged and paid by customer before the legally passing of property in goods would be considered in the sale price. Discount offered and reimbursed to the applicant from his vendor amount to sale price or otherwise - HELD THAT:- The applicant had received the payment of the price for the discount offered to customers. The applicant has received above credit notes to reimburse the amount of discount offered to customer, therefore, the amount of Rs. 22,026 is liable to be included in the sale price would be liable to sales tax. Claim of ITC which is not paid into government treasury - HELD THAT:- While passing the credit of Rs. 22,026, the automotive manufacturer company has reduced tax load of Rs. 2974/- on said amount. Thus they have reduced their tax liability to that extent and not paid tax into government treasury. Therefore, the claim of ITC in this respect is not found sustainable and thus required to be rejected. ITC on Demo car - Whether the Applicant is entitled to claim set off, on purchased motor vehicle and used it as "Demo Vehicles", irrespective of the fact that such vehicle continuing to be " stock-in-trade" or not being treated as "capital asset" in the books of accounts of the Applicants? - HELD THAT:- The ITC is allowable provided that the vehicle are not capitalized. The matter is related to finding of fact. The assessing officer/investigating officer should verify the books as to whether vehicle is capitalized or otherwise. Prospective Effect - HELD THAT:- It is settled principle that the issue of prospective effect is to be considered on fact and circumstances of each case separately. There is no straight jacket formula to say that prospective effect is to be given in typical circumstances - The tax liability of the applicant on the receipt of handling charges or service charges related to reqistration only is protected from period 11th July, 2011 to 29th January, 2016 only. Application disposed off.
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