2016 (1) TMI 738 - AT - Service Tax

Provision of additional services to the purchaser of Cars - collection of RTO registration charges, Smart Card Fees, Vehicle Registration Fees and other extra charges - Business Support Services or Not - Held that - The findings recorded by the lower authorities are incorrect as the definition of Business Support Services as per section 65(104c) of the Finance Act - Demand is unsustainable and liable to be set aside - Decided in favor of assessee.

Summary

Issues involved:
Service tax liability on the appellant under the category of "Business Support Services."

Analysis:
The appeal was directed against the Order-in-appeal regarding the service tax liability on the appellant under the category of "Business Support Services." The appellant, an authorized dealer of Maruti Cars, received extra charges from customers for various services related to car purchases. The Revenue contended that these charges, except for actual RTO registration charges, were taxable under Business Support Services. The first appellate authority held that these services fell under Business Support Services, directly related to the main business of car sales. However, the Tribunal found the lower authorities' findings incorrect, citing the definition of Business Support Services under section 65(104c) of the Finance Act. The definition includes various services related to business or commerce, but the charges collected by the appellant did not fall within this definition. The Tribunal disagreed with the characterization of the appellant's services as customer relationship management, stating that the definition did not cover the services rendered by the appellant. Consequently, the Tribunal held that the impugned order was unsustainable and set it aside, allowing the appeal with consequential relief, if any.