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M/s Sharyu Motors Versus Commissioner of Service Tax, Mumbai

2015 (11) TMI 229 - CESTAT MUMBAI

Demand of service tax - Business Auxiliary Services - appellant received some amount from various financial institutions as commission for marketing of Auto Loan products and also an amount from manufacturers of car under the head Target Incentive Scheme - Imposition of penalty - Invocation of extended period of limitation - Held that:- confirmation of tax liability under this head is upheld along with interest. Since the issue of whether such amount received by an assessee from financial instit .....

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Target Incentive Scheme - Held that:- Appellant had been given targets for specific quantum of sale by the manufacturers of the cars. As per the agreement, on achievement of such target and in excess of it, appellant was to receive some amount as an incentive. Service Tax liability confirmed against the appellant on the amount received as incentive for achieving the targets under Business Auxiliary Services is unsustainable and liable to be set aside - Decided in favour of assessee. - Appeal No. .....

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in had received some amount from various financial institutions as commission for marketing of Auto Loan products and also an amount from manufacturers of car under the head Target Incentive Scheme. It was noticed that the appellant had not discharged the Service Tax liability on such amounts. Show-cause notice was issued demanding the Service Tax liability along with interest thereof and also proposed for imposition of penalty for the extended period. Appellant contested the issue on merits as .....

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gards the Service Tax liability in the category of Business Auxiliary Services for the amount received from financial institution is commission for promoting the Auto Loan, he fairly submits that the issue is now squarely covered against him by the decision of Larger Bench of the Tribunal in the case Pagariya Auto Centre Vs. Commissioner of Central Excise, Aurangabad 2014 (33) STR 506 (Tri-LB). He would submits that penalties imposed on this count be set aside. 4. Learned AR reiterates the findi .....

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Bench of the Tribunal in the case of Pagariya Auto Centre (supra). On perusal of the said judgment and facts of the case in hand, we find that the issue is now squarely covered against the assessee. Accordingly, the confirmation of tax liability under this head is upheld along with interest. Since the issue of whether such amount received by an assessee from financial institution for promoting the products like auto loan etc, would be taxable or not, has been settled by the Larger Bench, we find .....

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c quantum of sale by the manufacturers of the cars. As per the agreement, on achievement of such target and in excess of it, appellant was to receive some amount as an incentive. It is the case of the Revenue that such amount is taxable under Business Auxiliary Services, we find no substance in the arguments raised by the learned AR as well as the reasoning given by the adjudicating authority. The said amounts are incentive received for achieving the target of sales cannot be treated as Business .....

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