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M/s. AVG Motors Limited, M/s. Indus Motor Company Pvt. Ltd. Versus The Commissioner of Central Excise, Customs and Service Tax

2017 (10) TMI 502 - CESTAT BANGALORE

Business Auxiliary Service - services in respect of sale of insurance products - The appellants contention is that MUL is paying service tax, and as such, the dealers are not liable to pay any further service tax on the Maruti Finance Dealer pay outs - Held that: - the appellants are doing the service of promotion or marketing of service viz., issuance of insurance policies on behalf of MIBL. The fact that service tax was being paid by MUL to the insurance company along with the insurance premiu .....

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ble. - Decided partly in favor of appellant. - ST/253, 277, 278/2006-DB - Final Order No. 21855 - 21857 / 2017 - Dated:- 1-9-2017 - Shri S. S. Garg, Judicial Member And Shri Ashok K. Arya, Technical Member Mr. Ricab Chand, Advocate For the Appellant Mr. Parasivamurthy, AR For the Respondent ORDER Per : Ashok K. Arya M/s. AVG Motors Ltd. (AVGML) and M/s. Indus Motor Co. Pvt. Ltd. (IMCPL) are in appeal against respective Orders-in-Appeal No.123/2006 dated 6.6.2006 and No.150 & 151/2006 dat .....

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ued show-cause notices No.30/2005 dated 26.7.2005 to AVGML and No.23/2005 dated 12.4.2005 to the appelalnts demanding service tax for providing BAS for and on behalf of MIBL and MIANL. (iii) The show-cause notice (SCN) issued to AVGML was adjudicated vide Order-in-Original No.6/2006 dated 17.2.2006 inter alia confirming liability of service tax amount of ₹ 11,54,148/- along with interest and imposition of equivalent penalty against the appellant. The appellant went in appeal against the Or .....

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econfirmed the demand of Service Tax along with interest and imposition of equivalent penalty. (v) Therefore, both the appellants are before this Tribunal. The subject matter being common, these appeals are being taken up together for decision. 3. All the parties have been heard. 4. After having carefully considered the facts of the case and the submissions of both the sides, it appears that the matter is covered by the Tribunal s decisions in the cases of Ved Automotives vs. CCE, Kanpur: 2016 ( .....

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hese facts are applicable to both the appellants. The appellants admit that they were receiving payments from MIBL for issuing insurance policies to customers and for collection of premium amount. 4.2 The appellants contention is that MUL is paying service tax, and as such, the dealers are not liable to pay any further service tax on the Maruti Finance Dealer pay outs. However, from the facts on record as well as the statements recorded of the appellants, it is clear that the appellants are doin .....

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the assessee-appellants are liable to pay Service Tax on the services performed by them to M/s. MIBL, a fully owned subsidiary of MUL. 4.2 In this regard, CBEC has also issued Circular No.87/05/2006-ST dated 6.11.2006 where inter alia the following issue/question has been mentioned. (d) Whether the commission received by the automobile dealers from Banks /Non Banking Financial Companies (NBFC), for introducing the customers seeking finances / loans to such banks / NBFCs is to be subjected to ser .....

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buyers of the vehicles for arranging the finances. For this, they have a tie-up with Banks / Non-banking Finance Companies. The customers are advised by the dealers to approach such financial companies for taking loans. The automobile dealers get commission from such financial companies for directing the customers to the latter. By this activity, the automobile dealers promote or market the services provided by their customer (i.e., the financial institution), and are therefore covered under tax .....

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