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TMI Blog2017 (12) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... e of business support service which is not the case made out in the SCN - Service Tax is not payable on commission bank/financial institution. Hire purchase commission - Held that: - such charges are being received from the buyers of vehicles for assisting in registration insurance etc. of the vehicles which is an essential requirement under the Motor Vehicle Act and the said receipts are not chargeable to Service Tax. Repossession charges - Held that: - they are received by the owners of the vehicle, whose vehicles are repossessed by the financiers and for safekeeping are entrusted to the appellant - For such service or parking, the appellant received an amount from the vehicle owners which is not taxable under BAS. Further, these re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther charges, Job-work charges and demand of Service Tax on Freight earned from Tata Motors Limited. 2. The appellant Ashoka Auto Sales Ltd. at Agra is registered for payment of Service Tax under various categories of service including BAS. It appeared to Revenue that the appellant is receiving commission for arranging loans for the customers and also sales and other incentives from Tata Motors for promoting or marketing the goods but are not paying any Service Tax on the said Business Auxiliary Services. Accordingly, show cause notice dated 3rd October, 2008 was issued for the period 1 July, 2003 to 31 March, 2007 by invoking extended, period demanding Service Tax on sales and other incentives received from Tata Motors, commission recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Service Tax provisions. 4. The second issue is regarding commission received from banks and financial institutions. The learned Counsel explains that they have not provided any service to the said banks/financial institutions. They have only provided permission or undefined table space in their premises to the banks and financial institutions so as to facilitate the availability of loan facility to the buyers of the vehicles. Since only such facility is provided, there is no element of Business Auxiliary Service as neither they are marketing any services of client nor they are personally involved in assisting the banks/financial institutions. The banks and/or financial institutions gave some incentive or commission to the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re concerned, when the vehicles are sold by the banks or financial institutions on financing, in case of default by a customer in repayment loans or installments, the vehicles are repossessed by the concerned financier, who keeps the vehicles in the appellants yard for convenience and nothing is charged by the appellant from the said financier on this account. Repossession charges are directly collected from the customers/vehicle owners for using the space of the appellant, which are in the nature of parking charges for the period the vehicles is lying in the appellants premises and not for any service provided to the banks/financiers. Thus, there is no element of service provided to any banks and/or financial institutions and neither the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Learned Counsel explained that so far job work charges are concerned, the same service charges received by the appellant for provision of services as an Authorized Service Station and it was further explained that the said job charges are in respect of servicing of commercial vehicles which is not taxable under the category of Authorized Service Station. So far providing of service non-commercial vehicles are concerned on such job charges, the appellant have already admittedly deposited the tax. 9. So far the Freight earned is concerned, it is explained that the appellant is not covered under GTA as defined under Section 65(50b) of the Act, which defines GTA as Goods Transport Agency means any person who provides service in relation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade discounts and as such not tenable. So far as the commission received from banks and financial institutions are concerned, the relationship between the appellant and the banks and/or financial institutions is on Principle to Principle basis. Both are promoting each other business. The appellant is interested in sale of the vehicle whereas the financial institutions or banks are interested in disbursement of loan for earning interest. Therefore, no particular activity done by the appellant is identified vide has the element of promoting the business of such banks and institutions save and except permission to use their premises or table space. 13. We hold that incentive or discount or commission received from the banks and institutio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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