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TMI Blog2018 (5) TMI 1679X X X X Extracts X X X X X X X X Extracts X X X X ..... tered with the RTO and to cover other minor expenditures relating to such activity, the appellant are collecting some amounts from the customers. The amount charged for such facilitation is in lump-sum manner and no headwise expenditure is being shown by them. The fact of the matter is that after bearing the expenditure for registration of the vehicles with the RTO and other minor expenses relating to the registration some amount get saved with the appellant and this amount is duly accounted for, in their financial accounts. The Department is of the view that the amount as retained by the appellant on account of RTO handling charges is liable to service tax under Business Auxiliary Service. The Commissioner (Appeals) has confirmed the deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle of the client received from the purchaser. It is his submission that Service Tax liability and the interest on the amount of business commission, penalties shall be imposed as per the law. 5. We have considered the submissions made by both sides and perused the records. 6. As regards the Service Tax liability on the amount received as commission from financial institution and other institutions the same is covered by the Larger Bench decision of this Tribunal in the case of Pagariya Auto Centre (supra) in favour of Revenue. Since appellant is not disputing tax amount and he has already discharged, we uphold the tax liability with interest. As regards the Service Tax liability on the amount retained by appellant on the RTO fees pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client; (v) production or processing of goods for, or on behalf of the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e various financial institutions, whether is taxable otherwise was settled by the Larger Bench, there were two different streams of the decisions contradicting each other. As the issue needs to be settled by the Larger Bench, the appellant having discharged Service Tax liability and interest thereon, this is a fit case for invoking Section 80 of the Finance Act, 1994 to set aside penalties. Invoking the provisions of the Section 80 of the Finance Act, 1994, we set aside the penalties imposed by the adjudicating authority". 4. Since the facts of the case at hand are similar to that of M/s Arpanna Automotive Pvt. Ltd. vs. CC & CE - 2016 (43) S.T.R. 397 (Tri. - Mumbai), following the above decision of this Tribunal, we hold that the charges ..... X X X X Extracts X X X X X X X X Extracts X X X X
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