9911796707
TMI Blog2018 (1) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of three wheeled auto rickshaw and availed CENVAT credit of service tax paid on the services provided by the financial company under the category banking and financial services. Alleging that the services provided by the financial companies in the name of subvention charges /incentive is in the nature of commission, hence, not eligible to credit, two demand notices dated 18.7.2014 and 11.11.2014 were issued to them for recovery of a total credit of Rs. 55,56,652/- with interest and proposal for penalty. On adjudication the demand was confirmed with interest and penalty. The ld. Commissioner (Appeals), on Appeal set aside the impugned orders and allowed the Appeals. Hence, the present Appeals are filed by the Revenue. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y attempt to change the classification at the recipient's end, is contrary to the judgment of the Hon'ble Supreme Court in the case of Sarvesh Refractories (P) Ltd. Vs. C.C.E. & Cus. - 2007 (218) ELT 488 (SC) followed by this Tribunal in the case of Newlight Hotels & Resorts Ltd. Vs. C.C.E.& S.T., Vadodara - 2016 (44) STR 258 (Tri-Ahmd.). However alternatively, on merit, he has submitted that since the Respondent did not have separate financial arms, they entered into agreement with the financial companies with the object for enhancement of sale of their product by providing financial assistance to the buyers and accordingly they agreed to discharge the subvention charges which, in the commercial parlance, is for sharing of risk and/or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iry of the MOU for further extension with reasonable mutually accepted amendments." 7. On a plain reading of the terms of the above arrangement/agreement between the Respondent and the financial companies, it is clear that the amount of 1500/- was paid towards subvention charges against each of the financial facility offered by the companies on each of vehicle by the customers of the Respondent. Ld. A.R. for the Revenue referring to the scope of services rendered by the financial companies as mentioned at Clause (3) of the said arrangement vehemently argued that the consideration paid by the Respondent to the financial companies is in the nature of sales commission and not sales promotion as erroneously observed by the ld. Commissioner (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
