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2015 (9) TMI 885 - AT - Service TaxBusiness Auxiliary service - services provided by the automobile dealers for facilitating the customers for taking banking loans from the Banks/Non-banking Financial Institution - Held that - It is observed from CBEC Circular No. 87/05/2006-S.T., dated 06-11-2006 that the issue of livability of services provided by automobile dealers to the Banking/Non-banking Finance Institutions and quantum of consideration of the services provided was disputable and there was confusion about taxability of the service and its valuation. Once, there was a dispute in the taxability and valuation of the services, then, it cannot be held that there was any malafied intention on the part of the appellant to evade payment of tax. Accordingly, extended period of limitation cannot be applied in the present proceedings and no penalties under Sections 76, 77 and 78 of the Finance Act 1994 are imposable and are accordingly set aside. However the demand within the period limitations is required to be confirmed against the appellant along with interest. The benefit of cum-duty price is also required to be extended period to the appellant, in view of the order passed by this Bench in the case of M/s. Viraj Travel Agency Vs. CST, Ahmedabad 2013 (2) TMI 509 - CESTAT Ahmedabad . For quantification of the demand, the matter is remanded back to the Adjudicating Authority after allowing the benefit of cum-duty. - Decided in favour of assessee.
Issues:
Charging of service tax on services provided by automobile dealers for facilitating customers in obtaining banking loans. Analysis: The appeal was filed concerning the charging of service tax on services provided by automobile dealers to assist customers in securing banking loans. The appellant's representative argued that there was confusion regarding the leviability of service tax and the amount of consideration, citing CBEC Circular No. 87/05/2006-S.T. The appellant contended that the extended period of limitations should not apply, and penalties under Sections 76, 77, and 78 of the Finance Act 1988 should not be imposed. Additionally, the appellant sought the benefit of cum-duty price. Several case laws were relied upon to support these arguments. The Revenue's representative argued that a significant portion of the demand fell within the limitation period, suggesting that dropping the entire demand as time-barred was not warranted. After hearing both sides and examining the case records, it was noted that there was a dispute regarding the taxability and valuation of the services provided by automobile dealers, as indicated in CBEC Circular No. 87/05/2006-S.T. Consequently, it was determined that there was no malicious intent on the part of the appellant to evade tax, leading to the decision that the extended period of limitation could not be applied. Penalties under Sections 76, 77, and 78 of the Finance Act 1994 were deemed inapplicable and set aside. However, the demand falling within the limitation period was confirmed against the appellant, along with interest. The benefit of cum-duty price was to be extended to the appellant based on a previous case law. The matter was remanded back to the Adjudicating Authority for quantification of the demand, with instructions to provide the appellant with an opportunity for a personal hearing before making a decision. Consequently, the appeal filed by the appellant was allowed by remanding the case to the Adjudicating Authority for further proceedings.
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