2008 (11) TMI 55

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..... er of Maruti Udyog Ltd. and sell vehicles to various customers. (b) The appellant has entered into an arrangement/agreement with financial companies, namely Kotak Mahendra Primus Ltd., ICICI Banks, and HDFC Bank for the purpose of arranging finance for vehicles sold by them to their customers. (c) Learned advocate submits that the representative of these financial institutions are accommodated in the dealer's premises itself. The prospective buyers are introduced to the finance companies and help in processing the documents and obtaining loan and vehicle sold. In connection with this the appellant is receiving service fees from the financing companies. The original authority [as well as Commissioner (Appeals)] have held that the service c .....

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..... ot need to inclusion of the dealer portion of the expenses to the assessable value of the product.  He also relies on the decision of the Single Member Bench of the Tribunal in the case of Silicon Honda, reported in 2007 (7) STR 475 (Tri.-B'lore) and in the case of Chadha Auto Agencies, reported in 2008-TIOL-1388-CESTAT-MAD. 4.3. He also submits that this is a case of interpretation of the taxing entry and no mala fide or element of suppression or mis-statement is involved and, therefore, imposition of penalty under Section 76, 77 & 78 is not warranted. 5. Learned D.R. submits that the business auxiliary services inter alia includes promotion of service rendered by client. There is no warrant to say that the service rendered should b .....

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..... er. In this case it has been stressed that the appellant is not rendering services exclusively for the finance companies. Their main object is to promote their own business. Is it a case, where the appellant is rendering services to the finance companies. Is it a case, the finance company is rendering services to the appellant. Or is it a case, the appellant is rendering services to the buyer of the vehicles. In any way the appellant is basically selling his vehicle to the customer. This arrangement help the appellant.  If it was only to the benefit of the appellant, the finance companies should have charged the services charges from the appellant. The terms of the agreement together with the fact that the appellant has been paid servi .....

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