9911796707
TMI Blog2023 (6) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... ot, therefore, be treated as consideration for any service. The incentives received by the appellant cannot, therefore, leviable to service tax. Following the above decision which is squarely applicable to the facts of the case, it is held that the incentives received by the appellant cannot be subject to levy of service tax under the category of Business Auxiliary Services. Business Auxiliary Services - reimbursable expenses received by the appellant from M/s. Maruti Udyog Ltd. and M/s. Sundaram Finance Ltd. - HELD THAT:- As per the annexure to the Show Cause Notice is seen that these are nothing but reimbursement of expense for advertisement. The Honourable Supreme Court in the case of Intercontinental Technocrats Ltd. [ 2018 (3) TMI 357 - SUPREME COURT] has held that the reimbursable expenses cannot be subject to levy of service tax. The decision relied by the Ld. AR for the Department has not considered the decision of the Hon ble Apex Court and hence not applicable. The demand cannot sustain and requires to be set aside - Appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... re no services rendered. 3. The said issue is no more res-integra and has been considered by the Tribunal in the case of M/s. Rohan Motors Ltd. Vs Commissioner of Central Excise, Deharadun 2021 (45) GSTL 315 (Tri. Delhi). Similarly in the case of BM Autolink Vs CCE., Kutch 2022 (12) TMI 12 CESTAT Ahemadabad, wherein the assessee was the dealer who purchased the vehicles from the M/s. Maruti Suzuki India Ltd. and subsequently sold the same to the various customers. It was held that the incentive/discount which are in regard to sales transaction cannot be subject to service tax. 4. The other amount which has been subjected to service tax is the reimbursement expenses received towards advertisement charges. The expenses for advertisement which were borne by the appellant was reimbursed by Sundaram finances as well as M/s. Maruti Udyog Pvt. Ltd. The scheme of joint advertisement was adopted in order to reduce the expenses in regard to the advertisement for the sale of cars and loan facility. These expenses were reimbursed by M/s. Maruti Udyog Pvt. Ltd. as well as M/s. Sundaram Finances Ltd. The appellant has not received any consideration and only the expenses were reimbursed. The ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of another person and clause sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person - (i) Deals with goods or services or documents of title to such goods or service; or (ii) Collects payment of sale price of such goods or services; or (iii) Guarantees for collection or payment for such goods or services; or (iv) Undertakes any activities relating o such sale or purchase of such goods or services; (b) "excisable goods" has the meaning assigned to it in clause (d) of section e of the Central Excise Act, 1944; (c) "manufacture" has the meaning assigned to it in clause (f) of section 2 of the Central Excise Act, 1944." 8. The very same issue was analysed by the Tribunal in the case of M/s. Rohan Motors Ltd. (Supra). The relevant paragraphs read as under: "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 appellant. Under the said agreement, the appellant receives discount form MUL, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght 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 under GTA service. Consequently, we set aside the demand under GTA service." 13. The same view was taken by the Tribunal in Commissioner of Service Tax, Mumbai-I Vs. Sai Service Station Ltd. [2013 (10) TMI 1155-CESTAT Mumbai] 14. In regard to the period post July, 2012, reliance has been placed by the learned Counsel for the appellant on an order dated March 23, 2017 passed by the Joint Commissioner, Central Excise in the matter of M/s. Rohan Motors Ltd. The period involved was from October, 2013 to March, 2014 and 2014-15. The Joint Commissioner, after placing reliance upon the decision of the Tribunal in Sai Service Station Ltd., observed as follows: "I also find that the ratio of the aforesaid case of CCE, Mumbai-I Vs. Sai Service Station is squarely applicable to the facts of the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " I also find that the ratio of the aforesaid case of CCE. Mumbai-I v. Sai Service Station is squarely applicable to the facts of the present case and hold that no service tax can be demanded on the 'incentive' which was in form of trade discounts, extended to the party in terms of a declared policy for achieving sales target. Accordingly, I find that the demand of service tax raised on this count is unsustainable. Thus demand of interest under section 75 of the Act, is also no sustainable." 10. Following the above decisions which is squarely applicable to the facts of the case, we hold that the incentives received by the appellant cannot be subject to levy of service tax under the category of Business Auxiliary Services. 11. A further demand has been made under the category of Business Auxiliary Services on the reimbursable expenses received by the appellant from M/s. Maruti Udyog Ltd. and M/s. Sundaram Finance Ltd. As per the annexure to the Show Cause Notice is seen that these are nothing but reimbursement of expense for advertisement. The Honourable Supreme Court in the case of Intercontinental Technocrats Ltd. (Supra) has held that the reimbursable expenses cannot be subje ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
