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TMI Blog2025 (4) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices (BAS). The Appellant was a dealer in motor vehicles manufactured by TATA Motors. The Appellant had entered into a dealership agreement with the TATA Motors for selling the motor vehicles and appellant used to discharge the appropriate tax on the said transaction against the invoices issued by the TATA Motors. Since, the incentives was offered by the TATA motors on target base, it is considered as discount by TATA motors and considering it as business auxiliary services rendered by the Appellant, demand was made. In addition to that, objection was made regarding non-payment of service tax against commission received by the appellant from financial institution for extending financial assistance. When an objection was raised to that eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant reported at 2008 (10) S.T.R. 449 (Tri. - Kolkata), wherein on the basis of Section 67(2) of the FA, 1994 it was held that the total amount collected towards provision of service would be treated as inclusive of tax, unless the customer has paid service tax separately to the service provider. This position has been maintained by the Hon'ble Supreme Court at 2009 (14) S.T.R. J49 (S.C.). Reliance is also placed on the following decisions wherein the benefit of cum-tax was extended to the assessee's therein on similar grounds: a. Ajay Enterprises Pvt. Ltd. v. CST, Delhi., 2016 (42) S.T.R. 471 (Tri. - Del.); b. Rajmahal Hotel v. CCE, Jaipur., 2006 (4) S.T.R. 370 (Tri. - Del.); c. Srichakra Tyres Ltd. v. CCE., 1999 (108) ELT 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. 9. Regarding the target oriented incentives, issue is no more res integra as the issue is settled by the Tribunal in the matter of M/s. Roshan Motors Ltd vs. CC, Dehradun (2020 (12) TMI 104 (CESTAT, New Delhi), wherein it is held that the dealers and manufacturers work on principal to principal basis and it was further held that sale promotion activities are undertaken by the dealer is for mutual business of a dealer and manufacturer. Accordingly CESTAT, New Delhi held that such incentives cannot be treated as consideration for any service. The dealing is on principal to principal basis only. 10. As regarding the Service Tax on commission received from financial institutions, since the Respondent accepted the Tax liability on cum-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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