Case Law Details
S.K. Cars India (P) Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that reimbursable expenses cannot be subject to levy of service tax. Accordingly, demand of service tax set aside as not sustainable.
Facts- The appellant is engaged in the business as dealer of Four Wheeler Motor cars of M/s. Maruti Udyog Ltd. and is registered as a service provider of Servicing of Motor Vehicles, Business Auxiliary Service and Goods Transport Agency Service.
On verification of Ledgers, it was noticed that the appellant has received reimbursement of advertisement charges from M/s. Maruti Udyog Ltd, and M/s. Sundaram Finance Ltd, for various promotional activities.
The Department was of the view that such advertisement charges received for promotional activities of sale of four wheeler vehicles would fall within the ambit of Business Auxiliary Services u/s. 65 (19) of the Finance Act, 1994.
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