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TMI Blog2018 (7) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... the audit of the accounts of the appellant noticed that the appellant has failed to pay the service tax on certain receipts. Accordingly, the Show Cause Notice dated 17.10.2014 was issued proposing to demand service tax under various grounds. The Show Cause Proceedings were concluded with the issue of the impugned order in which the service tax demands were upheld and aggrieved by the same the present Appeal stands filed. 2. In this connection, we heard Shri MD Maheshwari Ld. CA of the appellant as well as Shri G.R. Singh, DR. 3. The demand for service tax has been made on the following grounds:- (a) The appellant received certain commissions from various financial institutions for promoting their loan schemes for purchase of Maruti car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal in the case of Toyota Lakozy Auto Pvt. Ltd. reported as 2017 (52) STR 299 (Tri.-Mumbai). We have considered the decision of the Tribunal (supra) wherein the Tribunal observed as follows: "3. Appellant contends that Rs. 81,35,813/- and Rs. 1,21,47,133/- for the two periods has been wrongly subjected to tax because the agreement between the appellant and M/s Toyota Kirloskar Motor Limited is one of supply of vehicles by the latter on 'principal-to-principal' basis on which title and risk, as per Agreement are passed on to appellant when the vehicles are excise cleared and placed on common carrier. Depending on order quantity, the manufacturer raises invoices after according discounts which are designated as commission/incentive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, we reject the appeal of the department." And in re 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 marketing the products of MUL, the contention is that these incentives are in the form of trade discount. The assesse respondent is the authorised dealer of a car manufactured by MUL and are getting certain incentives in respect of sale target set out by the manufacturer. These targets are as per the circular issued by MUL. Hence these cannot be treated as business auxiliary service." 4. Ld. Authorized Representative reiterates the findings of the adjudicating authority. However, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at service tax is not required to be paid on the sale of goods. After hearing the Ld. DR also, we perused the cited decision of the Tribunal (supra). The observations of the Tribunal in the case are reproduced below:- "4. We have considered the facts of the case. The Board Circular referred to above in effect actually states that Service Tax is not leviable on the transaction treated as sale of goods and subjected to levy of sales tax/VAT. It is seen that as recorded by the Commissioner (Appeals), respondents were able to establish that amount on which the impugned Service Tax has been demanded actually pertains to the sale of spare parts/ accessories/ consumables like lubricants etc. by showing copies of the VAT assessment orders for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice on which cenvat credit has been availed has since been reversed by the appellant. It has been held by the Hon'ble Allahabad High Court in the case of Helo Mineral Waters that subsequent reversal of credit amounts to non taking of credit. By following the decision of the Allahabad High Court (supra), we find no justification for the amount ordered to be paid under Rule 6(3) of the Cenvat Credit Rules. Hence, we set aside the demand on this ground. The demand of service tax on all the four grounds as above has been challenged in the present Appeal. 4. In view of the above discussions, the impugned order is modified and we uphold the demand of service tax on the ground of commission received from financial institutions. Rest of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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