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TMI Blog2020 (12) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... service - The issue relating to demand of service tax on income earned by the appellant from registration charges and number plate charges under BAS and freight expenses under GTA has also been decided in favour of the appellant in ROHAN MOTORS LTD. VERSUS C.C.E., MEERUT-I [ 2018 (7) TMI 29 - CESTAT NEW DELHI] . Appeal allowed - decided in favor of appellant. - SERVICE TAX Appeal No. 53344 of 2015 - FINAL ORDER No. 51620/2020 - Dated:- 5-10-2020 - MR. DILIP GUPTA, PRESIDENT AND MR. C.L. MAHAR, MEMBER (TECHNICAL) Mr. B.L.Narasimhan and Ms. Neha Choudhary, Advocates for the Appellant Mr. Arun Thaplial, Authorised Representative for the Respondent ORDER The order dated June 18, 2015 passed by the Commissioner of Central Excise, Dehradun [the Commissioner] confirming a portion of the demand of service tax with penalty and interest has been assailed. The Commissioner has dropped certain demands of ₹ 35,45,636/-. 2. The appellant is a dealer of Maruti Udhyog Ltd. [MUL]. The appellant buys vehicles from MUL for further sale to the buyers by virtue of a dealership agreement dated January 1, 2013 entered into between Maruti Suzuki India Ltd. and the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y decision dated June 29, 2018; (vi) The demand of service tax on miscellaneous Income and registration and number plate charges is not sustainable; and (vii) The demand of service tax on freight expenses under GTA is not sustainable. 7. Learned Authorized Representative of the department has, however, supported the impugned order and also placed reliance on an advance ruling dated March 14, 2019 passed by the Appellate Authority for Advance Ruling, Maharashtra in the matter of M/s Bajaj Finance Ltd [ 2019(8) TMI 116 ]. to contend that the cheque bouncing charges would attract service tax. 8. The submissions advanced by learned Counsel for the appellant and Shri Arun Thapliyal, learned Authorized Representative of the Department have been considered. 9. The first issue that arises for consideration is whether service tax would be leviable on incentives prior to July, 2012. 10. As noticed above, the appellant purchases vehicles from MUL and sells the same to the buyers. It is clear from the agreement that the appellant works on a principal to principal basis and not as an agent of MUL. This is for the reason that the agreement itself provides that the appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant towards transport of vehicles from their dealership to the customers premises. 12. The Tribunal placed reliance on an earlier decision of the Tribunal in Tyota Lakozy Auto Pvt. Ltd. [ 2017 (52) STR 299 (Tri.- Mumbai) ] and observed. 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. 5. Revenue has ordered for payment of Service Tax under various receipts recorded under miscellaneous income. These include loading/unloading charges, Pollution Checkup charges, penalty-cum processing charges etc. 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. 6. 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 represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fered from the finding of the Tribunal. The relevant observations of the Commissioner are as follows: In this context, with due respect I differ from Hon ble Tribunal findings as the decision was based on circular issued by MUL whereas there is not mention of such incentives in their agreement which is the bible for execution of the said agreement. The circulars issued by MUL in respect of incentives is nothing but to cover up the payments made for promotion or marketing of the goods produced/manufactured by M/s MUL. 17. In fact, the Commissioner, after differing from the decision of the Tribunal, went on to place reliance upon an interim order passed by the Tribunal in M/s Automotive Manufacturers (P) Ltd. 18. The Commissioner was bound by the decision of the Tribunal and he could not have differed from the decision of the Tribunal. The adjudicating authority needs to be reminded of the decision of the Supreme Court in Union of India Vs. Kamlakshi Finance Corporation Ltd.[ 1991 (55) ELT 433 (SC) ] The Supreme Court noticed that the order passed by the Assistant Collector not only ignored the order of the Collector (Appeals) remanding the matter, but also distingu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Vs. The Commissioner of CGST Central Excise, Kanpur [ 2019-TIOL-3651-CESTAT-ALL ]. 20. The issue relating to demand of service tax on income earned by the appellant from registration charges and number plate charges under BAS and freight expenses under GTA has also been decided in favour of the appellant in Rohan Motors Ltd. 21. The learned Authorized Representative of the Department has, however, placed reliance upon a ruling dated March, 2019 of the Appellate Authority for Advance Ruling Maharashtra to contend that the amount collected towards bouncing of cheque charges amounts to supply of service, but learned Counsel for the appellant has pointed out that the said order was rectified subsequently by the Appellate Authority for Advance Ruling Maharashtra in its order dated December 12, 2019 and it was held We hereby hold that the additional/Penal interest recovered by the Applicant from their customers against the delayed payment of monthly instalments of the load extended to such customers, would be exempt from GST in terms of Sl. 27 of the Notification No. 12\2017-C.T. (Rate) dated 28.06.2017. 22. Thus, for all the reasons stated above, it is not possible to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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