9911796707
TMI Blog2018 (7) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... s manufactured by MUL. As per the agreement with MUL, the appellant has received various incentives/ discounts / bonus etc. from MUL from time to time. The income received under these heads was accounted by the appellant in their books of accounts as 'miscellaneous income'. During the course of audit of the books of accounts of the appellant, the Department noticed such Misc. income and took the view that such amounts received by the appellant from MUL are consideration towards promotion and marketing of the vehicles manufactured by MUL and such consideration is liable for payment of Service Tax under the category of Business Auxiliary Service. By taking the above view, show cause notice dated 17.10.2011 was issued covering the period 01.04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling within the normal time limit in view of the various decisions on the subject including that of the Larger Bench in the case of Pagariya Auto Centre vs. Commissioner - 2014 (2) TMI 98 - CESTAT- New Delhi - LB (3) In respect of the incentives received for activities such as registration of the vehicles and organizing the Number Plate, he referred to the recent decision of the Tribunal in the case of Yash Motors - Final Order No. 52016/2018 dated 25.05.2018 in which the Tribunal has taken the view that the charges received and retained by the assessees from Customers for facilitating RTO Registration is not chargeable to Service Tax under BAS. (4) With reference to the demand made under the category of GTA, he submitted that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived by the appellant from M/s. MUL. Such amounts have been received towards incentives/discounts in connection with the sale of the vehicles manufactured by MUL. In addition, certain amounts have also been received by the appellant towards Registration/ Number Plate etc. to facilitate the buyers of vehicles. All the above amounts have been charged under BAS. Certain amount of Service Tax has also been demanded under the category of GTA in respect of freight paid by the appellant towards transport of vehicles from their dealership to the customers' premises. 4. From a perusal of various case laws relied by the appellant, we note that the discounts/incentives received by the appellant from MUL cannot be made liable for payment of Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that - "6.5 On the appeal by Revenue on the issue of incentives received by the appellant from the car dealer, we find that the relationship between the appellant and the dealer is on a principal to principal basis. Only because some incentives/ discounts are received by the appellant under various schemes of the manufacturer cannot lead to the conclusion that the incentive is received for promotion and marketing of goods. It is not material under what head the incentives are shown in the Ledgers, what is relevant is the nature of the transaction which is of sale. All manufacturers provide discount schemes to dealers. Such transactions cannot fall under the service category of Business Auxiliary Service when it is a normal market practice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot towards provision of any service on behalf of MUL or anybody else. Consequently, there is no justification for levying Service Tax under BAS. 6. In miscellaneous income, commission amounts received from ICICI have also been included. This commission has been received for provision of furniture to ICICI for facilitation of accommodating representatives in the premises of the appellant for selling insurance policies for cars. Such an activity cannot be considered under BAS as has been held by the Larger Bench in the case of Pagadiya Auto Centre (supra). Consequently, we set aside the demand of Service Tax on such commission received. 7. A portion of the demand also has been raised under the category of GTA. The appellant has paid the fre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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