Case Law Details
M/s Marudhara Motors Vs. CCE (CESTAT Delhi)
1. The brief facts of the case are that the appellant is engaged in the trading activity i.e. sale of vehicle and spare parts and also provides various taxable services, for which it got itself registered with the service tax department. During the disputed period, documents processing charges received by the appellant from the buyer of vehicle was considered as a service by the Department under the taxable category of business auxiliary service and accordingly, Service Tax demand was confirmed against it.
2. The Ld. Advocate appearing for the appellant submits that the appellant provides the document processing service for processing of documents for the customers, who are interested in getting their vehicle funded by the banks/financial institutions. Thus, he submits that the relationship between appellant and its customers are purely commercial in nature and there is no involvement of any financial institutions/banks and thus, such service provided by the appellant to its customers should not fall under the purview of ‘business auxiliary service’.
3. On the other hand, Ld. DR appearing for the revenue reiterates the findings recorded in the impugned order.
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