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M/s. Sehgal Autoriders Pvt. Ltd Versus Commissioner of Central Excise & Service Tax, Pune

2017 (9) TMI 892 - CESTAT MUMBAI

Business Support Services - recovery of expenses such as RTO charges, fuel, pooja material while selling vehicle to the customers - Held that: - This issue has been settled in various tribunal judgment that this activity is not liable to service tax - demand of service tax on Business Support Service is set aside. - Penalty u/s 78 - Held that: - majority of amount is related to Business Auxiliary Service. As per the submission of the appellant they have been paying service tax regularly, th .....

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(Judicial) And Mr. Raju, Member (Technical) Ms. Chandni Tanna, Advocate for the Appellants Shri. V. R. Reddy, Asstt. Commissioner ( A.R. ) for the Respondent ORDER Per : Ramesh Nair The fact of the case is that appellant are registered with Service Tax Department for providing services of Business Auxiliary Service. The appellant were paying service tax on the Commission received on Banking and Insurances Services, which was considered as taxable service under the category of Business Auxiliary .....

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and and imposition of penalty of equal amount under Section 78. Show cause notice was adjudicated and proposal of show cause notice was confirmed. Being aggrieved by the Order-in-Original, appellant filed appeal before the Commissioner(Appeals), who rejected the appeal by upholding the Order-in-Original, therefore appellant are before us. 2. Ms. Chandni Tanna, Ld. Counsel for the appellant submits that as regard the demand under Authorized Service Station Service and Business Auxiliary service m .....

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wn group company, issue has been decided in their favour, therefore the issue is no longer res-integra. 3. On the other hand, Shri. V.R. Reddy, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. On careful consideration of submissions made by both sides, we find that appellant is not contesting the service tax liability on merit on Business Auxiliary Service i.e. Commission received from the bank and authorized station service, ther .....

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ded the issue as under: 2. The issue involved in these two appeals in regarding the Service Tax liability under the category of "Business Support Services" for the period July, 2007 to December, 2009 and January, 2010 to December, 2010 on an amount collected by appellant as an extra charge from their customers, apart from the sale price of the vehicles. It was contended by the appellant before the lower authorities that extra charges are nothing RTO Registration charges, Smart Card fee .....

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records. 3. The issue involved in this appeal is regarding the service tax liability on the appellant under the category of "Business Support Services". 4. It is seen from the records that the appellant herein is authorized dealer of Maruti Cars. The appellant is also receiving an amount from their customers who purchase cars from them, an amount which is RTO registration charges, Smart Card Fees, Vehicle Registration Fees and other extra charges. It is the case of the Revenue that the .....

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findings recorded by the lower authorities are incorrect as the definition of Business Support Services as per Section 65(104c) of the Finance Act reads as under: support services of business and commerce" means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of the delivery schedules, managing distribution and logistics, customer relationshi .....

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lities, pantry and security . It can be seen from the above reproduced definition that the said definition covers services which are rendered as indicated therein. In the case in hand, the amount collected as extra charges is not for any of the services which are enumerated in the said definition. The first appellate authority has stated that appellant is a rendering customer relationship services which in our view is incorrect as the definition talks about an entity rendering customer relations .....

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