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2017 (12) TMI 1277 - AT - Central ExciseBusiness Auxiliary Services - whether Service Tax under the category of Business Auxiliary Services have been rightly demanded on sales and other incentives received from Tata Motors, Commission received from banks/financiers, levy of Service Tax on hire purchase Commission/other charges, Job-work charges and demand of Service Tax on Freight earned from Tata Motors Limited.? Commission from bank/financial institution - Held that: - 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 - Service Tax is not payable on commission 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 - Held that: - they are received by 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-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. Service of commercial vehicle - Held that: - the receipts for service of commercial vehicle is not taxable under the category of Authorized Service Station. Freight received from customers/Tata Motors - Held that: - essential element of GTA that issuance of consignment notes was not done by the appellant and thus, the same cannot be liable to Service Tax as a GTA. Accordingly, no Service Tax is payable on this score also. Appeal allowed - decided in favor of appellant.
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