TMI Blog2023 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... marketing activities for the finance companies. Their business is sale of Maruti Cars, as a dealer. A customer may choose to make full down payment or may choose to go for financing. In case he chooses to go for financing, he may choose any one of the choice of banks available with him, for which he collects information from the Appellant. Finance commission is received by the Appellant from various financing banks, which are chosen by the customer, in respect of the amount of finance provided by the finance companies to the customers - the Appellant has not provided any Commission Agent service liable to service tax under the category of BAS - it is observed that the Appellant was not performing any of the activities of the commission a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he consideration received by them as the value of taxable service rendered as Commission Agent and liable to service tax under the category of Business Auxiliary Service , w.e.f.16 06 2005. Accordingly, the Notice demanded service tax of Rs. 1, 78, 87, 178/-, for the period 2003-04 to 2007-08 . The Notice was adjudicated and the demand of service tax of Rs.1, 78, 87, 178/- was confirmed, under the category of BAS, along with interest and penalty under Section 78 of the Finance Act, 1994 was imposed, vide Order-in- Original dated 14.01.2010. No penalty was imposed under Section 76 of the Finance Act. The Appellant filed the present appeal against the impugned order. The Department file appeal against non-imposition of penalty under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered as amount received towards rendering of Business Auxiliary Service. 4. The Appellant cited Board s Circular No. 87/05/2006-ST dated 06.11.2006, where para 4 of the Circular states that the automobile dealers when help buyers of the vehicle for arranging finance and that the dealer have tie-up with Banks/ Non-Banking Finance Companies. This activity is considered as to promote or market the services provided by the financial institution and are covered under taxable service, namely, the Business Auxiliary Service. The Appellant stated that they were not advising the customers to approach such financial companies for taking loans. The choice of the particular finance company was entirely at the discretion of the customer. The App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The commission so received by the appellant was not taxable under BAS. If at at all there was a liability, it could be taxable under the category of Support services in relation to business or commerce (BSS here after) as defined in Section 65(105)(zzzq) of the Finance Act, 1994. Thus, it would at best be taxable w.e.f. 01.05.2006 which they have already paid. Reliance is placed on following judgments; i) S.R. Kalyankrishnan reported in 2008 (9) STR 255 (Tri.-Bang.)- 03.08.2007. ii) Hira Automobiles Ltd., reported in 2009 (16) STR 408 (Tri.-Del)- 02.11.2007 iii) Wings Group of Companies reported in 2008 (12) STR 287 (Tri.- Bang.)-21.04.2008. 9. The Ld A.R. reiterated the findings in the impugned order. 10. Heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not, certain principles were laid down by the Tribunal vide order dated 12.09.2013 reported in 2014 (33) STR 506 (Tri.-LB). Extract of the relevant para is reproduced below: 20. On a consideration of the apparent conflict of opinion in the decisions mentioned in the order of reference and the other decisions which were cited at bar, it is clear that no uniform principle emerges as would guide determination of whether a particular transaction involving an interface between an automobile. Dealer an bank or financial institution would per se amount to BAS. The identification of the transaction and its appropriate classification as the taxable BAS or otherwise must clearly depend upon a careful analysis of the relevant transactional docume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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