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TMI Blog2020 (5) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellants from M/s. Maruti Suzuki India Ltd. (M/s. MSIL) - HELD THAT:- The issue is settled in favour of the appellant s themselves by this Bench relying on M/S SAI SERVICE STATION LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX [ 2014 (4) TMI 640 - CESTAT BANGALORE] where it was held that through the circular issued by MUL which provides certain incentives in respect of cars sold by the assessee respondent. These incentives are in the form of trade discount. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 20449 of 2014, 20450 of 2014, 23209 of 2014, 22328 of 2014, 20400 of 2016 - Final Order No. 20178-20182/2020 - Dated:- 12-2-2020 - HON'BLE MR. S.S GARG, JUDICIAL MEMBER AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n case of sale of used cars is not tenable under law as the basic ingredient of charge under Section 65(19) of Finance Act, 1994 is not satisfied. Department has tried to levy service tax because of the fact that the transfer of registration under Motor Vehicles Act, 1988 occurs after the ownership has been transferred from the prior owner to the appellants. The learned counsel submits that during the time of refurbishment of the vehicle, in cases required, the ownership of the vehicle rests on the appellants and as such, no service is rendered to anybody else, leave alone, Business Auxiliary Service. It is to be noted that none of the sellers of the cars in their statements accepted that there has been an expressed consent by them for refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to M/s. MSIL. Therefore, no business of MSIL is canvassed or supported by the activities of the appellant. Therefore, the provisions of Section 65(19) of the Finance Act, 1994 are not attracted. He further submits that incentive and discounts received by the appellant are in the nature of trade discounts and VAT has been paid on the same. For the value which has already suffered VAT cannot be charged to service tax under the Finance Act, 1994 as both of them are mutually exclusive. It is to bring to the notice that purchase and sale of goods is excluded from the purview of service under Section 65B(44) of Finance Act, 1994. Looking into the fact that the appellants have no right to claim the incentives from M/s. MSIL, the same cannot be tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another. (2) A contract of sale may be absolute or conditional. (3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell. (4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. Once the price is receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities are undertaken as value addition by them and it is neither for the seller nor the purchaser. It is an activity undertaken to increase the value of the vehicle so that they get the maximum return out of it. Therefore we cannot say that there is a service element in this transaction either. As regards the invoices produced before us there is no clarity being there as to whether the Commissioner has seen these documents. We find that the Commissioner has observed that he has scrutinized the financial accounts, reply submitted and the data available with him. Moreover, at the time of investigation it is difficult to believe that no invoices were recovered. In any case there is no observation saying that the vehicles were not sold under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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