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TMI Blog2014 (1) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes under the category of 'Authorised Service Station Services'. They also undertake the job of servicing of the vehicles of Ashok Leyland and are receiving commission from the principal. They also provide certain services to finance companies who finance purchase of vehicles and receive commission from them. Inasmuch as the appellant was not paying Service Tax on some of these activities, they were directed to get themselves registered under the category of 'Business Auxiliary Services' and also to furnish the copy of the balance sheet and copy of the agreements with the financiers and their principals along with the statement of monetary receipts of the commissions received. The appellant replied to the department stating that their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong with interest thereon under Section 73 read with Section 75 of the Finance Act, 1994 and also proposing to impose penalties on the appellant under Sections 76, 77 and 78 of the said Finance Act. The notice was adjudicated vide the impugned order wherein the Service Tax demand was confirmed along with interest thereon and penalties were imposed under Sections 76, 77 and 78 of the Finance Act, 1994. Hence the appellant is before us. 3. The learned counsel for the appellant submits that the commission received shown in the balance sheet of the Nagpur branch is the commission which they have received from their Mumbai office and it is only an inter branch transfer and, therefore, the question of payment of any Service Tax does not ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunities were given to the appellant to explain the difference in the figures reflected in the balance sheet and in the ST-3 returns. The Branch Manager at Nagpur could not explain the difference between the two figures and he has also confirmed that they are not paying any Service Tax on the commission received from their head office and there is no evidence led by the party to show that Service Tax liability has been discharged at Mumbai in respect of the commission received relating to sale of Ashok Leyland vehicles. Therefore, he prays for putting the appellant to terms. 5. We have carefully considered the submissions made by both the sides. 5.1 We have also perused the agreements entered into between the appellant and M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les service. The Main Dealer shall also ensure that pre-delivery inspection and free services are done to all products sold/operated in the country. The Main Dealer shall also employ at his expenses, a qualified Service Engineer together with a service van and tools to ensure that all the users of the products in the Territory are assisted adequately to maintain such products in sound mechanical condition and the warranty obligations receive due attention." 5.2 As per Article 18 the appellant has to undertake advertisement of Ashok Leyland products in the territory to the extent and in such manner as may be reasonably required by Ashok Leyland. Thus, from the agreement it is evident that the appellant undertakes not only sale of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Andhra Pradesh in the case of SQL Star International Ltd. v. Commissioner of Customs, Hyderabad - 2012 (276) E.L.T. 465 (A.P.) = 2012 (25) S.T.R. 113 (A.P.) held that while considering the application for stay or for dispensing with the requirement of pre-deposit, the following principles should be kept in mind. "14. The following principles should be kept in mind while considering the applications for stay or for dispensing with the requirement of pre-deposit under Section 35F of the Act :- (1) Three aspects to be focused while dealing with the applications for dispensing of pre-deposit are : (a) prima facie case, (b) balance of convenience, and (c) irreparable loss; (2) Inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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