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2020 (4) TMI 76 - AT - Service TaxBusiness Auxiliary Services - demand for the period April 2009 to June 2012 confirmed for the reason MAN Germany was rendering BAS to the Appellant by providing after sale services to the customers of vehicles on behalf of the Appellant - HELD THAT:- The role of the Appellant assigned under the Agreement was limited to sale of trucks including spare parts. Article 9.2 clearly provides that the Appellant shall not be responsible for rendering any after sale services and that MAN Germany shall arrange for such services as may be required by its marketing organizations or its designated buyers. Article 9.5 basically provides that as MAN Germany has to provide warranty and after sale service, the Appellant shall allow a discount of Euros 500 on the product sold by the Appellant to MAN Germany. This does not in any manner mean that MAN Germany was rendering after sale service on behalf of the Appellant. In fact, the agreement is to the contrary. It provides that the Appellant shall not be responsible for rendering any after sale service. In such a situation, it cannot be said, under any circumstances, that MAN Germany was providing after sale service on behalf of the Appellant. After sale service was agreed to be provided by MAN Germany on its own account. The discount that is being offered by the Appellant to MAN Germany is merely an adjustment in the price of goods sold and is not towards provision of any service to be undertaken by MAN Germany on behalf of the Appellant. The service provided by MAN Germany would, therefore, not classify as BAS. The confirmation of demand, therefore, for the period 1 April, 2009 to 30 June, 2012 cannot be sustained - Appeal allowed - decided in favor of appellant.
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