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TMI Blog2024 (12) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... e the activity relating to car sales could be taken as one leviable to Service Tax. It is not disputed that the amount reimbursed by virtue of credit notes actually relates to target incentives and discounts offered by HCIL passed on to the customers through the appellant related to its business of sale of cars, spare parts and accessories and not on account of rendition of any service. It therefore belies logic to include the said activity relating to sale of goods within the ambit of section 66B of the act ibid. - the provisions of the Finance Act cannot be made applicable to such transactions between the appellant and the HCIL and between the appellant and/or its customers. The discounts and incentives are offered by the manufacturer in relation to sale and purchase of the goods passed on to the ultimate consumers while transferring the possession and ownership of the goods. The appellant in support of their contention, drew our attention to this Tribunal s decision in the case of M/S JM FINANCIAL SERVICES PVT LTD VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI-I [ 2013 (7) TMI 151 - CESTAT MUMBAI ], wherein the amount received by way of reimbursement of electricity and office expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her dealers of HCIL and carried out repair and maintenance service of four wheelers manufactured by HCIL. It is his case that they were providing Business Auxiliary Services such as facilitating customers to avail insurance services while purchasing cars or provide extended warranty on cars etc. The Ld.Advocate submitted that the appellant had been discharging its service tax liability on the revenue generated on account of repair and maintenance services of the four wheelers as well as commission received from the banks/financial institutions/insurance companies, extended warranty income, repair/service charges etc. 6. The Ld.Advocate representing the appellant further submits that discounts as per schemes introduced by HCIL are offered from time to time that are required to be followed by the appellant and passed on to their customers. This discount is reimbursed by HCIL by way of credit notes credited to their bank accounts. It is informed that participation in such schemes introduced by HCIL is mandatory for the appellants. He submits that the investigations initiated by DGCEI actually culminated into two show cause notices (1) show cause notice No.DGCEI/DZU/INV/H/CCIPL/326/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter. 10. We note that the appellate authority, while confirming the demand, has not rendered any express findings on the pleas as made out by the appellant, despite noting that the reimbursements made by the manufacturer to the appellant were with regard to sale and purchase of goods . Relevant paras of the order-in-appeal are reproduced hereinbelow : 5.3 I find that period of demand of service tax involved in the above ase of M/s. Sai Service Station Ltd. [2014 (35) S.T.R. 625 (Tri. Mumbai)] subsequently upheld the Hon ble Supreme Court is before introduction of negative list regime as introduced w.e.f. 01.07.2012. Post negative list regime, the definition of Service was defined under Section 65B(51) of the Service Tax Act, 1994. Under 65B(51) taxable service means any service on which service tax is leviable under Section 66B ................................... 5.4 The impugned demand pertains to the post negative list regime. I find that the AA has held that the Appellants are promoting and selling the cars and other products of the manufacturer-HCIL achieving targets i.e. wholesale (purchase) and retail (sale) and in return they are getting discounts/incentive from CHIL. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the issues as stated therein, the Tribunal had the following to state :- 5. We have taken into consideration the rival contentions. We find that by going by the wording of the said Notification No.12/2003, there is no requirement of payment of VAT to become eligible for exemption in respect of said goods for availing the benefit of Notification No.12/2003. The notification provides that there should be documentary proof indicating the value of the goods sold so as to avail benefit of exemption of such value from the assessable value for arriving at service tax. This crucial aspect was not properly understood by the Original Authority. We, therefore, hold that the requirement of actual payment of VAT is not to be taken into consideration for extending the benefit of said Notification No.12/2003, but it is only to be examined whether documentary proof indicating the value of goods sold, is available on record to extend the said benefit. Further, the Original Authority has not taken into consideration the provisions of Rule 6(3) of Cenvat Credit Rules, 2004, that existed during the material period allowing the Cenvat Credit to appellants. So, we direct Original Authority to re-adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount received by way of reimbursement of electricity and office expenses was held as not liable to Service Tax, as no service was rendered therein. Relevant paras of the said decision is extracted as under : 7.1 The contention of the appellant is that the amount is received by way of reimbursement of electric charges and office expenses from other group companies. In actual, no service has been rendered to the other group companies. So far receipt of Rs. 2,72,269/- is concerned, the same relates to the receipt on account of infrastructural support provided to the group companies on which liability has been admitted by the appellant. So far electric charges and other expenses are concerned, the same have been received by way of share of the expenses and no service has been rendered, and accordingly, reimbursement of expenses is not leviable to Service Tax . Further, the Revenue has not discharged their onus by establishing that the taxable service has been rendered or any service has been rendered under the category of Business Support Services . 7.2 Having considered the rival submissions and contentions, we are of the view that in respect of reimbursement of common expenses in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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