Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 1066 - AT - Service TaxLevy of service tax - administrative charges collected during sale of vehicle - demand alongwith interest and penalty - HELD THAT:- A close perusal of the case record would reveal that appellant had collected those charges on the sale invoices itself as part of price of vehicle sold and only in their books of account, it was wrongly shown as administrative charges (para 6 of the Order-in- Original). Further, the total value of the vehicle including the above sale expenditure is maintained by the appellant as per the catalogue price declared by the vehicle manufacturing company. This being the factual aspect and Service Tax collection being dependent on the invoice value of services rendered which is un-associated with a sale invoice on which GST/Sales Tax is levied, Service Tax cannot be demanded on the same value which has been absorbed in the sale price of the vehicle. The demand of Service Tax on such price solely on the basis of wrong reflection in the books of account (ledger) is not in conformity to the law and same is required to be set aside - Appeal allowed - decided in favor of appellant.
|