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Joshi Auto Zone Pvt. Ltd. Versus Commissioner of Central Excise Chandigarh

2016 (2) TMI 656 - CESTAT NEW DELHI

Receipt of incentive and commission from the Maruti Udyog Limited while providing providing “authorised service station” and “business auxiliary service” - commission /remuneration received by the appellant from the financial companies. - Held that:- It is seen that the records do not indicate that the claim of the appellant that they are mere provider of “table space” and that these receipts are in the nature of consideration for such allocation can be controverted. Therefore, the tax levied on .....

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chooses not to retain any of the commission and instead passes them on to the executives is an internal policy of the appellant that need not concern the tax authority. Processing fees are the consideration for handling the loan applications and it is, undoubtedly, incidental to promotion of the service that is offered by the finance companies. - Decided partly in favor of assessee. - Appeal No: ST/1860/2010 - Final Order No: 53953/2015 - Dated:- 30-10-2015 - MR. JUSTICE G. RAGHURAM, PRESID .....

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t July 2003 to 31st March 2005, the appellant received an amount of ₹ 4,72,15,282/- while reporting a taxable value of ₹ 73,44,579/- as commission received from M/s Maruti Udyog Limited and other financial companies. Likewise for the said period the appellant received an amount of ₹ 14,40,385/- from M/s Maruti Udyog Ltd as incentives without reporting the same as a taxable value. Accordingly, the original authority confirmed demand of short-paid amount of ₹ 37,33,287/- fo .....

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CENVAT credit) with interest thereon and, while upholding the imposition of penalty under section 76, reduced the penalty under section 78 to ₹ 10,04,929/-. The specific receipts that were held to be taxable were the commission or remuneration from finance companies (other than Maruti Finance who had discharged the tax liability) and insurance companies, as well as processing fees and incentives received by the executives of the appellant from finance companies. 3. Heard the rival submiss .....

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ed to providing table space , would determine the leviability under the head of business auxiliary service. It is seen that the records do not indicate that the claim of the appellant that they are mere provider of table space and that these receipts are in the nature of consideration for such allocation can be controverted. Therefore, the tax levied on such remuneration is liable to be set aside. 4. The commission paid through the appellant to their executives is, admittedly, remuneration for t .....

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