Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1333 - AT - Service TaxValuation - includibility - finance charges - additional finance charges - Fleet Card issued by the appellant to the customer, who availed vehicle loan facilities from them, is for facilitating the customers to procure fuel from the outlets of petroleum companies, with whom the appellant-assessee had prior arrangement - claim of appellant is that these charges are nothing but interest - Held that: - We perused the account statement of the appellant-assessee of one of the months during the material time. In May, 2009, the statement shows the amount charged by the appellant-assessee is exclusive of interest and other charges. However, interest for the month is also shown separately. Hence, the claim that "finance charge" and "additional finance charge" are interest is not correct. Such transaction between the appellant-assessee and the customer being not one of lending loan, the question of exclusion of Interest on Loan in terms of Board's Circular dated 17.09.2004 does not arise. In terms of agreement between the oil companies and the appellant-assessee, it is clear that the Fleet Card holder enjoys various privileges - the "finance charge" and "additional finance charge" are to form part of taxable value for taxable service of BOFS/Credit Card Services during the material period. Extended period of limitation - penalty - Held that: - the case is of interpretation issue - The impugned order did not bring out sustainable reasons for invoking willful suppression, mis-statement etc., against the appellant-assessee - extended period cannot be invoked - penalty also set aside. Appeal allowed in part.
|