Discount/ commission/ incentives for sale of cars is not compensation received by dealer from car manufacturer

My Car (Pune) Pvt Limited Vs Pr. Commissioner Customs (CESTAT Mumbai) CESTAT Mumbai held that the discount/ commission/incentives given for sale of cars cannot be treated as compensation received by the appellant for any services provided to the car manufacturer. Facts- The appellants are engaged in sale and purchase of motor cars of M/s. Maruti Suzuki India Ltd., (MSIL) under the brand name “Maruti”, since March 2007. They are also running ‘authorised service station’ for Maruti vehicles sold by them and also for the vehicles sold by other dealers in India. They have rented out some p...