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TMI Blog2018 (7) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant is purchasing the cars from MUL on principal to principal basis and subsequently, reselling the same. Demand of Service Tax under various receipts recorded under miscellaneous income - loading/unloading charges - Pollution Check-up charges - penalty-cum processing charges etc. - commission amounts received from ICICI - Held that:- It is obvious that these amounts have been received not towards provision of any service on behalf of MUL or anybody else. Consequently, there is no justification for levying Service Tax under BAS - In miscellaneous income, commission amounts received from ICICI have also been included. This commission has been received for provision of furniture to ICICI for facilitation of accommodating representati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view that such amounts received by the appellant from MUL are consideration towards promotion and marketing of the vehicles manufactured by MUL and such consideration is liable for payment of Service Tax under the category of Business Auxiliary Service. By taking the above view, show cause notice dated 17.10.2011 was issued covering the period 01.04.2006 to 31.03.2011. Further, show cause notice dated 09.10.2012 was issued covering the period 01.04.2007 to 31.03.2012. The proceedings initiated under the above show cause notices resulted in the issue of two impugned orders, which are under challenge in the present appeals. Since the issue involved is common, these appeals are disposing of with this common order. 2. Explaining the grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Yash Motors - Final Order No. 52016/2018 dated 25.05.2018 in which the Tribunal has taken the view that the charges received and retained by the assessees from Customers for facilitating RTO Registration is not chargeable to Service Tax under BAS. (4) With reference to the demand made under the category of GTA, he submitted that the appellant has organized for transportation of vehicles from their dealership to the premises of the customer by engaging other vehicles. In such cases they have paid the freight but he submitted that their activity is not in the nature of a goods transport agency and they have not issued any consignment notes. By relying on to the recent decision in the case of South Eastern Coal Fields Ltd. - 2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also been demanded under the category of GTA in respect of freight paid by the appellant towards transport of vehicles from their dealership to the customers' premises. 4. From a perusal of various case laws relied by the appellant, we note that the discounts/incentives received by the appellant from MUL cannot be made liable for payment of Service Tax under BAS, since the appellant is purchasing the cars from MUL on principal to principal basis and subsequently, reselling the same. In the case of Tyota Lakozy Auto Pvt. Ltd. - 2017 (52) STR 299 (Tri.-Mumbai) the Tribunal considered an identical issue. The observations of the Tribunal are reproduced below:- "3. Appellant contends that ₹ 81,35,813/- and ₹ 1,21,47,133/- for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for promotion and marketing of goods. It is not material under what head the incentives are shown in the Ledgers, what is relevant is the nature of the transaction which is of sale. All manufacturers provide discount schemes to dealers. Such transactions cannot fall under the service category of Business Auxiliary Service when it is a normal market practice to offer discounts/ institutions to the dealers. The issues is settled in the case of Sai Service Station (supra). Therefore, we reject the appeal of the department." And in Sai Service Station Limited it was held that " 14. In respect of the incentive on account of sales/target incentive, incentive on sale of vehicles and incentive on sale of spare parts for promoting and marketi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for selling insurance policies for cars. Such an activity cannot be considered under BAS as has been held by the Larger Bench in the case of Pagadiya Auto Centre (supra). Consequently, we set aside the demand of Service Tax on such commission received. 7. A portion of the demand also has been raised under the category of GTA. The appellant has paid the freight expenses in connection with transportation of Cars to their customers. However, they have not issued any consignment notes which are necessary to identify the appellant as a goods transport agency. As per the views expressed by the Tribunal in the case of South Eastern Coal Fields Ltd. (supra), in the absence of consignment notes, the activity of the appellant cannot be classified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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