9911796707
TMI Blog2007 (11) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... . In respect of cars sold by the appellants, the Excise duty is paid by Tata Motors on the value of cars less the dealers' discount. The appellants sell the cars at the full price to the customers and pay sales tax on such price. They also provide free after sales service to the customers by charging only the material cost and not labour charges. Shri Amalendu Chakraborty, ld. Consultant appearing for the appellants states that it is an admitted fact that Tata Motors does not reimburse the cost of free after sales service provided by the appellants in respect of cars sold by them. He states that the Ministry issued a Circular No. 62/11/2003, dated 21-8-2003 under which it was clarified that if the value of service provided free of charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds service tax and in no other case such demands have been made on any other dealers. He further refers to the decision of Bangalore Bench of the Tribunal in the case of Idea Mobile Communications Ltd. v. CCE, Trivandrum reported in 2006 (4) S.T.R. 132 (Tri.) = 2007 (78) RLT 532 (CESTAT-Ban.) which has held that the service tax is not leviable when sales tax has been paid. He further points out that the Bangalore Bench has relied on an observation of the Hon'ble Supreme Court in the case of M/s. Gujarat Ambuja Cements Ltd. v. UOI - 2006 (3) S.T.R. 608 (S.C.) = 2005 (67) RLT 469 (S.C.), which reads as under: This mutual exclusivity which has been reflected in Article 246(1) means that taxing entries must be construed so a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to sales tax by the State; the excise duty on manufactured goods which is levied by the Centre; and the tax on services, which is also levied by the Centre. The impugned amount in question is a part of the dealers' margin which has been recovered by the appellants as a part of the sale value of the cars from the customers and the entire amount has been subjected to sales tax by the concerned State Government authorities. When the appellants sold the cars and recovered the amount including the dealers' margin, the dominant intent, was to sale the goods, namely, cars and not to provide free after sales service. In our view, the entire amount including the dealers' margin has been rightly taxed to sales tax representing the value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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