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TMI Blog2018 (7) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... vices or not? - Held that:- The discounts/ incentives received by the appellant from the manufacturer of cars will not be liable for payment of service tax - reliance placed in the case of Toyota Lakozy Auto Pvt. Ltd. [2016 (12) TMI 541 - CESTAT MUMBAI] - demand set aside. Valuation - inclusion of consumable/ spare parts recovered from the customers in assessable value - Held that:- The appellant has been paying VAT on the spare parts/consumables sold to the customer while providing service - reliance placed in the case of Krishna Swaroop Agarwal [2014 (10) TMI 569 - CESTAT NEW DELHI] - demand set aside. CENVAT Credit - common input services used in taxable service as well as trading activity - Rule 6(3) of the CCR - Held that:- The e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved certain commissions from various financial institutions for promoting their loan schemes for purchase of Maruti cars by the customers. Department was of the view that the commissions received were liable to payment of service tax under the category of business auxiliary service. In this connection, the Ld. Counsel submitted that the appellant is not pressing this ground. The service tax amount has already been paid by them, which has also been appropriated in the impugned order. But the Ld. DR submitted that the appellant will be liable to pay penalty under Section 78 of the Finance Act, 1994 for the amount of service tax admitted and paid. After considering both sides, we uphold the demand on this ground in as much as the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rier. Depending on order quantity, the manufacturer raises invoices after according discounts which are designated as commission/incentive merely as a management terminology. Ld. CA for appellant places reliance in the decisions of the Tribunal in Jaybharat Automobiles Limited vs. Commissioner of Service Tax, Mumbai [2015-TIOL-1570-CESTAT-MUM = 2016 (41) S.T.R. 311 (Tri.)], Sai Service Station Limited vs. Commissioner of Service Tax, Mumbai [2013-TIOL-1436-CESTAT-MUM = 2014(35) STR 625 (Tri.)], Tradex Polymers Private Ltd. vs. Commissioner of Service Tax, Ahmedabad [2014 (34) STR 416(Tri. Ahmd.)] and Garrisson Polysacks Private Ltd. vs. Commissioner of Service Tax, Vadodara [2015 (39) STR 487 (Tri-Ahmd.)]. In re Jaybharat Automobi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se cannot be treated as business auxiliary service. 4. Ld. Authorized Representative reiterates the findings of the adjudicating authority. However, in view of the settled position in the decisions of the Tribunal supra, we hold that the discounts received on procurement of vehicles from the manufacturer are not liable to tax as business auxiliary services and set aside the demand on that head. By following the decision (supra) we set aside the demand of service tax on this ground. (c) During the course of carrying out service of the vehicles as an authorised service centre for Maruti cars, the appellant also used various consumables/ spare parts. The price of such consumable/ spare parts were also recovered from the customers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been demanded actually pertains to the sale of spare parts/ accessories/ consumables like lubricants etc. by showing copies of the VAT assessment orders for the financial years 2006-07 2007-08. It would clearly entitle them to the benefit of Notification No. 12/2013-S.T. Indeed even the provisions of Section 67 lay down that the value for the purpose of levy of Service Tax is the gross amount charge for taxable service. Thus, we do not find any merit in the Revenue s appeal which is hereby quashed. In the present case also, we note that the appellant has been paying VAT on the spare parts/consumables sold to the customer while providing service. Hence, we set aside the demand of service tax on this ground. (d) The appellant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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