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TMI Blog2017 (4) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... p; "(a) that this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner case and after going into the validity and legality thereof quash letter F. No. DGCEI/MZU/I & IS 'A'/12(3)/10/2015 dated 24.06.2015 (Exhibit "A")" 2. When this writ petition was filed in this court way back on 8th September, 2015, the challenge was to a communication from the Directorate General of Central Excise Intelligence dated 24th June, 2015. That communication, copy of which is at page 19 of the paper book, reads as under:- "F. No. DGCEI/MZU/I & IS 'A'/12(3)/10/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him that in terms of the agreement with MUL, MUL offers certain target based incentives to the petitioner. The incentive is in the nature of reduction from the sale price of the cars/spare parts. These are in the nature of discount offered to the petitioner either in the form of cash discount or quantity discount. The Revenue thought it to bring it in the ambit of "service" and as understood by the Finance Act, 1944. 4. The allegation is that for earlier years this very issue was raised by the Revenue. They issued a show cause notice dated 22nd August, 2008. That was adjudicated. As far as this legal aspect is concerned, on 22nd June, 2009, the order-in-original was passed, in which, the third respondent observed that the activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (44) of the Finance Act, 1994, yet, the word "declared service" being included therein and an exception carved out in that behalf will not take within the amended provision the activities of the petitioner, which remain the same. The business activities, therefore, do not partake the nature of a service. That is always a sale of goods and subject to the local tax or a sales tax imposed by the State Legialature, then, the central levy can never be said to be attracted. For all these reasons, he would submit that the show cause notice should not be allowed to be adjudicated. According to Mr. Raichandani, all facts are placed before this court in the affidavit in reply and the hearing on the show cause notice and passing of an order of adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation. The requisite information was not supplied and therefore, further communications were addressed and post institution of the writ petition as well. True it is that there was an earlier show cause notice issued and further true it is that the adjudication order passed in those proceedings were accepted by the Revenue. Still, post institution of this writ petition, it was found that there was no stay or prohibition against investigation. The investigation carried out revealed that though the petitioner is an authorised dealer of cars manufactured by Maruti Suzuki India Limited, the vehicles were purchased from the said Maruti Suzuki India Limited. The stock was managed and then the vehicles were sold to the customers from the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that the various incentives were received on account of satisfactory services in various fields, namely, puchase/delivery of goods, namely, vehicles/spare parts, sale of the goods, the servicing of the vehicle parts and customer satisfaction etc. That is for achieving commercial success. The allegations that are made and from para 12.1 onwards would reveal as to how the matter was approached by the Revenue earlier and post the amendment. 9. Mr. Raichandani would only read para 14(a) of the show cause notice and to submit that the law has evolved, according to the Revenue, but it has not evolved to such an extent as to take within its import a sale of goods and subject to a levy of sales tax under the Sales Tax Act. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including those in this writ petition can be raised, we dispose of the writ petition. 10. As far as Writ Petition No. 3099 of 2016 is concerned, Mr. Raichandani submits that it is filed by the Federation of Automobile Dealers Association. He fairly states that the show cause notice, as issued to the petitioner in Writ Petition No.10088 of 2015, has not been issued to individual dealers and members of this association. In view thereof, presently we do not think that we should entertain a wider challenge and that too in a representative capacity. Keeping open the challenge for being raised not only by the association at a later stage, but equally by the individual members, we dispose of this petition. We clarify that all contentions of all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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