TMI Blog2023 (6) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... rein the Tribunal had referred to the judgement of M/S ROSHAN MOTORS PVT. LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS, CENTRAL GOODS AND SERVICE TAX, JAIPUR, RAJASTHAN [ 2022 (8) TMI 1254 - CESTAT NEW DELHI] and held that The vehicle manufacturer M/s. Maruti Suzuki India Ltd. on the basis of yearly performance of sale grants the discount to the dealer, this discount is nothing but a discount in the sale value of the vehicle sold throughout the year therefore, these sales discount in the course of transaction of sale and purchase of the vehicles hence, the same cannot be considered as service for levy of service tax - thus, the demand of service tax of Rs.3,86,36,400/- cannot survive and is set aside. Demand of service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading (purchase/sale) of Maruti car from MSIL and selling them to the end consumers, as well as other related business, like servicing and maintenance of the vehicles etc. Based on the investigation undertaken by the DGGI wing of the department in to the business operations of the Appellant, it was issued with a Demand cum Show cause notice dated 29.09.2020 alleging non/short payment of service tax on incentives/discounts received from MSIL on various promotional schemes implemented for promoting the sales of Maruti vehicles. It was also alleged by the department that there was a short declaration of taxable value in the ST-3 return in comparison to the books of accounts for the impugned period. The demand was stated to have been raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant that such incentives are in the nature of trading income as the same arises out of sales of vehicles made by the Appellant and there is no element of service to attract service tax on the same. The Appellant also submitted that as per Para 35 of the Dealership Agreement between MSIL and the Appellant, it is mandatory for the dealer viz. the Appellant to promote sales of the MSIL vehicles. Further, MSIL also provides various discounts to the Appellant based on their purchases from MSIL, overall performance and customer satisfaction etc. Further, MSIL provides compensation to the Appellant on account of rate difference when a vehicle is sold by the Appellant to a customer at a lower price due to reduction in the recommended sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomers. The transaction between M/s. Maruti Suzuki India Ltd. and the dealer and subsequently sale transaction between the dealer and the customs are purely on principal to principal basis. The vehicle manufacturer M/s. Maruti Suzuki India Ltd. on the basis of yearly performance of sale grants the discount to the dealer, this discount is nothing but a discount in the sale value of the vehicle sold throughout the year therefore, these sales discount in the course of transaction of sale and purchase of the vehicles hence, the same cannot be considered as service for levy of service tax. This issue is no longer res-integra as the same has been decided in various judgments cited by the appellant. That being the position of law, in our vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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