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TMI Blog2018 (11) TMI 1763X X X X Extracts X X X X X X X X Extracts X X X X ..... not be considered as a service under the category of the business auxiliary service for the levy of service tax - thus, the amount is not taxable under the category of the business auxiliary service as same being in the form of a trade discount received by the appellant from the supplier of vehicles. Whether the value of the parts and spares supplied/used in the course of undertaking servicing of the vehicles need to be included in the taxable value under the category of Authorized Service Station ? - HELD THAT:- In principle the value of the spare parts and components used during the course of undertaking of servicing of vehicles is not includable in the taxable value for charging service tax. However, the fact whether the parts, spare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clutch and transmission, drive shafts, brakes wheels, suspension, electrical connections etc. are undertaken before the servicing of the vehicle and in case any part or equipment needs replacement, the appellant replaces the same in the course of servicing of the vehicle. During the course of the audit, it has been observed by the department that there is a difference between the value of receipts on account of incentive, sale of spare parts, commission and labour charges for service of vehicles shown by the appellant in their balance sheets for the financial year 2006-2007 to 2010-2011 then what has been deducted by them in their ST-3 returns filed before the department for the relevant financial years. After necessary enquiries, the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts based on the volume of transaction/sales achieved by them in a particular month or in a particular season and that the incentive is not for providing any service to the manufacture of the cars. The learned Advocate has cited various decisions of this Tribunal on the issue which are as follows :- (i) My Car Pvt. Ltd. versus Commissioner of Central Excise, Kanpur reported in 2015 (40) S.T.R. 1018 (Tri. Del.); (ii) Commissioner of Service Tax, Mumbai I versus Sai Service Station Ltd. reported in 2014 (35) S.T.R. 625 (Tri. Mumbai); and (iii) Sharyu Motors versus Commissioner of Service Tax, Mumbai reported in 2016 (43) S.T.R. 158 (Tri. Mumbai). 2. On the issue of inclusion of the value of the spare parts, compone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered as the commission for providing a business auxiliary service and can be subjected to service tax ; (ii) whether the value of the parts and spares supplied/used in the course of undertaking servicing of the vehicles need to be included in the taxable value under the category of Authorized Service Station . 5. We find that so far as the first issue is concerned, the same is no longer res-integra as it has been decided by several decisions of this Tribunal specially in the appellant s own case in appeal No. 58585 of 2013 under the final order No. 50048 of 2017 dated 03/01/2017. It has been held that the incentive received by the appellant from M/s Maruti Udyog Ltd. for achieving certain sales target for a month or for a season is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the incentive received by the appellant from M/s Maruti Udyog Ltd. for achieving certain sales targets, we hold that same is not taxable under the category of the business auxiliary service as same being in the form of a trade discount received by the appellant from the supplier of vehicles. 7. With regard to the second issue, whether the value of parts and spares used by the appellant in the course of undertaking servicing of the vehicles need to form the part of taxable value or not. We find that here also the following decisions of this Tribunal are relevant which specifically covers the issue at hand : Tanya Automobiles (P) Ltd. versus Commissioner of Central Excise Service Tax, Meerut I reported in 2016 (43) S.T.R. 155 (Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the transaction value. The Board s Circular dated 23-8-2007 also confirms the above position. Therefore, we remand the matter back to the adjudicating authority for consideration afresh of the contention of the appellant that the cost of spare parts sold cannot be included in the value of the services rendered. The appellant is also directed to submit all documents and evidences in support of their claim that they have discharged Sales Tax/VAT on the spare parts sold during the course of rendering the service. 5. Thus, the appeal is allowed by way of remand. The stay application is also disposed of. 9. In view of above, we hold that in principle the value of the spare parts and components used during the course of undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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