Case Law Details
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 portion of the premises on lease.
On scrutiny of the appellant’s records during an Audit conducted by the Department, as well as on the basis of Audit report and the ST Returns filed, it appeared that the appellants had short paid service tax.
Accordingly, show cause notice proceedings were initiated by the Department demanding service tax along with interest and penalty. The Commissioner adjudicated the case confirming the adjudged demands of service tax besides imposition of penalty. Being aggrieved, the present appeal is filed.
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