2013 (12) TMI 383

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..... ound that the applicant had provided banking and financial services. A demand of Rs.1.72 crores is confirmed on the ground that the applicants provided the service of authorized service station. 4. In respect of the demand of Rs.170 crores which is in respect of repair and maintenance of vehicles during the warranty period, the contention of the applicants is that show cause notice was issued on the ground that the applicants had not provided list of dealers who are undertaking the activity of maintenance and repair during warranty period and the applicants also made provision in the balance sheet in respect of likely liability of the company in respect of repair and maintenance during warranty period. The contention is that the applicants .....

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..... ements, processing fee, pre-closure charges, termination charges etc. The demand is in respect of the interest which is received on the loans. The applicants are also selling the debts to various banks and the Revenue wants to tax the amounts for consideration of selling of debts under the banking and financial services. The contention is that the service tax on payment of loan is not liable to service tax earlier under Section 67 of the Finance Act and now under Rule 6(2) of the Service Tax Rules. In respect of selling of debts, the contention is that this cannot be treated as banking and financial services hence the demand is not sustainable. 6. In respect of the demand of Rs.1.72 crores, the contention is that the applicants are providi .....

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..... crores, the contention of the Revenue is that as per the provisions of the Finance Act, the authorized service stations are liable to pay service tax in respect of the activity undertaken by them. The provisions of service tax are not applicable in respect of service stations which are not authorized by any manufacturer of motor vehicles hence as the applicants are providing service to the motor vehicles manufactured by them hence are liable for service tax. During argument, the applicants, for stay purposes, admitted this liability and submitted that in case the value of parts is excluded from the total consideration, the demand comes to approximately Rs.55 lakhs. 10. We find that the demand of Rs.170 lakhs (sic) is in respect of repair .....

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