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TMI Blog2017 (3) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... eals), Nagpur is impugned in these proceedings. 2. The impugned order upheld the demand of Rs. 1,29,760 and Rs. 1,76,019 as tax on rendering of 'business auxiliary service' to M/s Tata Motors Ltd during 2006-08 and during 2008-09 respectively. Allegedly, the 'free service' provided to customers were rendered on behalf of M/s Tata Motors Ltd and for which consideration was included in the margins paid to the appellant on sale of vehicles. The demand was adopted by the original authority from the show cause notice that attributed Rs. 200, Rs. 250 and Rs. 300 to each 'free service' for the three years respectively. Interest was also confirmed and penalties imposed under section 76, 77 and 78 of Finance Act, 1994. 3. Learned Chartered Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yet the Ministry has chosen to keep silent regarding taxability of such free servicing provided by the dealers for which no reimbursements are made by the vehicle manufacturers. It appears to us that such silence about the dominant practice of providing free servicing has resulted in some field officials taking unilateral action as in this case while majority of the dealers are not taxed on free servicing provided by them. 5. We also find that in the constitutional scheme of things, there is mutual exclusivity between the taxability of sale of goods, which is charged 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 amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Service Tax in these cases is based on assumptions and presumptions. When a service is free, unless Revenue shows some evidence that the appellant got reimbursement in some other guise, it will not be possible to confirm the demand. In these circumstances, we do not find any merit in the impugned orders. Hence, we allow the appeals with consequential relief, if any.' 6. As late as in 2014, the Tribunal in Commissioner of Central Excise, Indore v. Jabalpur Motors Ltd [2014 (36) STR 1160 (Tri-Del)] held that '5. It is evident from the above definition that the liability to service tax is on account of the said service provided to a customer. The service is provided to the car buyers who are the customers. For the free services, no amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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