9911796707
TMI Blog2018 (3) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... equisite documents and forms for the said loan/general insurance from the customers and also ensure that the disbursed vehicles are hypothecated to the financial institutions. For these activities, MUL share a portion of the commissions received from the financial institutions and insurance companies with the appellant. Department took the view that the activity undertaken by the appellant falls under taxable service business auxiliary service of section 65(19) of the Finance Act, 1994 and the definition of the commission agent in the said definition. Hence show cause notice dt. 10-01-2007 was issued to the appellants, inter-alia proposing demand of service tax of Rs. 13,18,556/- with interest thereon and imposed penalties under various pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) CCE Jaipur vs. Ajmer Automobiles (P) Ltd. [2012(26)STR 19 (Tri.-Del.)] ii) CCE Mangalore vs. Abharn Motors Pvt. LTd. [2011(23) S.T.R. 72 (Tri.-Bang.)] iii) Popular Vehicles & Services Ltd. vs. CCE, Kochi [2010(18) S.T.R. 493 (Tri.-Bang.)] 3. On behalf of department, Ld. DR Shri B. Guna Ranjan supports the impugned order and also made written and oral submissions which can be broadly summarized as under: a) A customer desirous of buying a vehicle approaches the dealer and in case he requests for arranging finances for the buyer, the dealer then approaches the financial institutes for providing the loan for the buyer with all the relevant documents. The amount for vehicle loan is directly received by the dealer from the financial ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e doesn t state whether M/s MUL have discharged service tax liability on the finance commission received during the period under dispute. 4.1) Heard both sides and have gone through the facts of the case. The crux of the department s case is that appellants, for arranging vehicle loans and vehicle insurance from Maruti Finance and Maruti Insurance to their customers, are getting commission amounts from the said companies and hence they are promoting or marketing the business of those companies and receiving in lieu commission. On the other hand, appellants contend that as dealers of MUL, they are only providing services on behalf of the clients i.e. MUL and that they have not entered any agreement with the financial institutions/banks and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax liability under business auxiliary service . The Tribunal in that decision held as under: "8.1 There is no dispute that the appellants received a commission from MIBL/MUL whenever it facilitated sale of insurance policy by MIBL or sanction of loan by a finance company to a buyer of maruti brand vehicles. The insurance policy issued by the National Insurance Company is customized for buyers of maruti vehicles and is called maruti insurance. Loan sanctioned by select finance companies to buyers of maruti vehicles is also similar as regards the facilitation rendered by the appellants. In both the cases, the appellants earned the commission obviously for its role in MIBL/MUL providing their respective services. We find that it was the clie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds and recharge coupons. No liability survived on account of sale of the same sim cards and recharge coupons by the appellants on the discount it had received from BSNL. The tax paid on commission paid by NIC and banks/finance companies is similar to the sales tax paid by BSNL on the consumer price of sim card and recharge coupons. 8.3 We find that in the case on hand, tax was paid on the commission paid by the insurance company and by the banks/finance companies. Once service tax is paid by MIBL/MUL on commission paid by their clients for provision of the respective services, no liability survives under BAS on any work carried out by an intermediary which contributed to the same outcome. Moreover, if any service tax is paid by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
