2016 (12) TMI 1536

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..... t there should be a relationship of agent and principal with the appellant acting as agent of M/s Hyundai Motors. A perusal of the agreement entered into by the appellant with M/s Hyundai Motors, reveals that it has been made on principal to principal basis - Prima facie, it appears that the levy of service tax does not appear to be sustainable especially in view of the fact that the relationship between the appellant and M/s Hyundai Motors are on principal to principal basis - the case merits waiver of pre-deposit in full - appeal allowed - waiver of pre-deposit granted till disposal of the appeal.
Shri S.K. Mohanty, Member (Judicial) and Shri V. Padmanabhan, Member (Technical) Shri Manish Gaur and Rachit Jain, Advocates - for the appe .....

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..... ok the view that the applicant has functioned as commission agent of M/s Hyundai and charged service tax on the amounts received by them. 3. Heard Shri Manish Gaur, learned Advocate for the appellant as well as Shri Ranjan Khanna, learned AR for the Revenue. 4. The learned Counsel for the appellants submits that the incentives received on sale of vehicles and its spare parts and for promoting and marketing the products of M/s Hyundai are in the nature of trade discounts. Consequently there could be no levy of service tax under business auxiliary service. They also relied upon many case laws including the following :- (i) CST, Mumbai - I vs. SAI Service Station Ltd. reported in 2014 (35) S.T.R. 625 (Tri. - Mumbai) ; (ii) Popular Motor Wo .....

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..... ase of the Revenue is that the activities undertaken by the appellant is covered by the definition of commission agent and hence leviable to service tax under the category of business auxiliary service. The definition of commission agent at the relevant time reads as follows :- "(a) "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person - (i) deals with goods or services or documents of title to such goods or services ; or (ii) collects payment of sale price of such goods or services ; or (iii) guarantees for collection or payment for such goods or serv .....

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