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Auto Links Enterprises (I) Pvt. Ltd V/S CCE, Delhi-I


Company & Directors' Information:- THE LINKS INDIA PRIVATE LIMITED [Active] CIN = U22222DL2013FTC261548

Company & Directors' Information:- E R AUTO PRIVATE LIMITED [Active] CIN = U34300HR2002PTC035002

Company & Directors' Information:- K Y AUTO PRIVATE LIMITED [Active] CIN = U50300JK2013PTC003849

Company & Directors' Information:- J. S. B. AUTO PRIVATE LIMITED [Active] CIN = U50300DL2010PTC198144

Company & Directors' Information:- T & R AUTO PRIVATE LIMITED [Active] CIN = U50200TG2012PTC082553

Company & Directors' Information:- D R D B AUTO PRIVATE LIMITED [Strike Off] CIN = U74899DL1988PTC032028

Company & Directors' Information:- A-1 AUTO PVT. LTD [Active] CIN = U51502MH2006PTC165934

Company & Directors' Information:- AUTO INDIA PRIVATE LIMITED [Active] CIN = U65991TN1984PTC010923

Company & Directors' Information:- Z-AUTO PRIVATE LIMITED [Active] CIN = U50500UP2021FTC153664

Company & Directors' Information:- AUTO LINKS LIMITED [Under Process of Striking Off] CIN = U34300JH1978PLC001325

Company & Directors' Information:- K V AUTO LTD [Strike Off] CIN = U28932PB1994PLC014522

Company & Directors' Information:- K G N AUTO PRIVATE LIMITED [Active] CIN = U74900PN2015PTC157675

Company & Directors' Information:- J. S. AUTO PRIVATE LIMITED [Active] CIN = U34102UP1986PTC008173

Company & Directors' Information:- P S AUTO PRIVATE LIMITED [Active] CIN = U34300MH1999PTC120052

Company & Directors' Information:- P M C AUTO LIMITED [Strike Off] CIN = U34300DL1995PLC071849

Company & Directors' Information:- B C C AUTO PVT LTD [Active] CIN = U74899DL1992PTC051439

Company & Directors' Information:- H H AUTO PRIVATE LIMITED [Amalgamated] CIN = U34100DL2009PTC192880

Company & Directors' Information:- M M AUTO PRIVATE LIMITED [Strike Off] CIN = U50300UP1988PTC009527

Company & Directors' Information:- G B AUTO PRIVATE LIMITED [Strike Off] CIN = U50400MH1998PTC114977

Company & Directors' Information:- M C AUTO PVT LTD [Under Process of Striking Off] CIN = U34300DL1977PTC008716

Company & Directors' Information:- E N B AUTO (INDIA) PRIVATE LIMITED [Active] CIN = U34300PB1988PTC008040

Company & Directors' Information:- THE LINKS PRIVATE LIMITED [Active] CIN = U74300KA1977PTC003154

Company & Directors' Information:- K D R AUTO PRIVATE LIMITED [Active] CIN = U34300DL2005PTC132732

Company & Directors' Information:- K S R AUTO PRIVATE LIMITED [Active] CIN = U34300PN2011PTC140367

Company & Directors' Information:- J P AUTO PVT LTD [Strike Off] CIN = U50402WB1991PTC052147

Company & Directors' Information:- E G AUTO PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1987PTC027016

Company & Directors' Information:- R AND H AUTO INDIA PVT LTD [Active] CIN = U74899DL1982PTC013349

Company & Directors' Information:- DELHI ENTERPRISES PRIVATE LIMITED [Active] CIN = U74899DL1968PTC004918

Company & Directors' Information:- D D AUTO PRIVATE LIMITED [Active] CIN = U74899DL1985PTC022306

Company & Directors' Information:- C R AUTO PRIVATE LIMITED [Strike Off] CIN = U34300PB1997PTC020137

Company & Directors' Information:- B S K AUTO PRIVATE LIMITED [Strike Off] CIN = U29246PB1997PTC020704

Company & Directors' Information:- K AND K AUTO PRIVATE LIMITED [Active] CIN = U29199TZ1996PTC007431

Company & Directors' Information:- J K M AUTO PRIVATE LIMITED [Strike Off] CIN = U34300DL2005PTC143914

Company & Directors' Information:- K AND K AUTO PRIVATE LIMITED [Not available for efiling] CIN = U34300DL1988PTC032426

Company & Directors' Information:- H B AUTO (INDIA) PRIVATE LIMITED [Active] CIN = U50401OR1988PTC002075

Company & Directors' Information:- S B G AUTO PRIVATE LIMITED [Strike Off] CIN = U50101MH2006PTC158566

Company & Directors' Information:- O P AUTO PRIVATE LIMITED [Active] CIN = U51103DL2008PTC181391

Company & Directors' Information:- D K S AUTO PVT LTD [Strike Off] CIN = U34300DL2001PTC111465

Company & Directors' Information:- C L K AUTO PRIVATE LIMITED [Strike Off] CIN = U34300DL2003PTC118551

Company & Directors' Information:- K B H AUTO PRIVATE LIMITED [Strike Off] CIN = U74899DL2000PTC107258

Company & Directors' Information:- COMPANY LINKS PRIVATE LIMITED [Strike Off] CIN = U99999MH1962PTC012373

Company & Directors' Information:- AUTO INDIA LIMITED [Not available for efiling] CIN = U99999MH1948PLC006176

Company & Directors' Information:- R K AUTO INDIA PVT LTD [Strike Off] CIN = U99999DL2000PTC901836

    S.T. Appeal No. 52858 of 2014 (Arising out of Order-in-Appeal No. 19/ST/DLH/2014 dated 13.02.2014 passed by the Commissioner of Central Excise (Appeals), Delhi-I) and Final Order No. 51737/2018

    Decided On, 07 May 2018

    At, Customs Excise Service Tax Appellate Tribunal New Delhi

    By, THE HONORABLE JUSTICE: V. PADMANABHAN
    By, MEMBER AND THE HONORABLE JUSTICE: AJAY SHARMA
    By, MEMBER

    For Petitioner: A.K. Batra and Vibha Narang, C.A And For Respondents: G.R. Singh, AR



Judgment Text


1. The present appeal is against the Order-in-Appeal No. 19/ST/DLH/2014 dated 13.02.2014.

2. The appellant is an authorised dealer of M/s. Tata Motors Limited and is engaged in the selling of passenger cars manufactured by M/s. Tata Motors. The dispute, which covers the period 01.07.2003 to 31.12.2004, is that the appellant, in the course of their business as a authorised dealer of M/s. Tata Motors, has facilitated various banks and Non Banking Financial Institutions, in the activity of sanctioning bank loans to the customers who would like to purchase vehicle of M/s. Tata Motors. Both the authorities below have taken the view that the commission received by the appellant from the banks/NBFC, will be liable to payment of service tax under the category of 'Business Auxiliary Service' (BAS) falling under Section 65(19) of the Finance Act, 1994. Service Tax amounting to Rs. 15,71,614/- has been demanded from the appellant alongwith interest and penalty under various Sections of the Finance Act, 1994. The impugned order has been challenged before us.

3. With this background, we heard Sh. A.K. Batra, ld. Consultant for the appellant and Sh. G.R. Singh, ld. AR for the Revenue.

4. Ld. Consultant submitted that the appellant has not acted as an agent for Banks/NBFCs but has provided only table space in their premises so that the banks/NBFCs can conduct their business of financing vehicles sold by the appellant. He relied on the decision of the Larger Bench of the Tribunal in the case of M/s. Pagariya Auto Center v. CCE, Aurangabad : 2014 (2) TMI 98-CESTAT, New Delhi (LB) in which the Larger Bench has laid down certain guidelines to decide whether the activity will be covered under BAS or 'Renting of Immovable Property Service'. He further submitted that the Tribunal has been consistently following the said decision of the Larger Bench in subsequent cases.

5. Ld. AR justified the impugned order. He referred to the initial paragraph of the show cause notice and argued that the appellant has not simply provided table space but have actively promoted the loans of various Banks and NBFCs. He accordingly submitted that the demand for service tax may be upheld.

6. We have heard both sides and perused the record. We have also considered the case law relied upon by the ld. Consultant.

7. The activity of the appellant has to be examined in the light of the contracts executed by the appellant with various Banks/NBFCs to decide if the commission received by the appellant will be liable to payment of service tax under BAS. It is required to be examined whether the activities are clearly covered within the definition of BAS.

8. The larger Bench of the Tribunal in the case of Pagariya Auto Center (supra) has observed that-

"20. On a consideration of the apparent conflict of opinion in the decisions mentioned in the order of reference and the other decisions which were cited at bar, it is clear that no uniform principle emerges as would guide determination of whether a particular transaction involving an interface between an automobile dealer and bank or financial institution would per se amount to BAS. The identification of the transaction and its appropriate classification as the taxable BAS or otherwise must clearly depend upon a careful analysis of the relevant transactional documents. Only such scrutiny and analysis would ensure rational classification of the transaction.

21. Where mere space is provided along with furniture for facilitating accommodation of representatives of financial institutions in the premises of an automobile dealer and consideration is received for that singular activity, such consideration may perhaps constitute a rent for the provision of space and associated amenities. Such restricted relationship/transaction may not amount to BAS. If on the other hand, the transactional documents and other evidence on record indicates a substantial activity falling within the contours of any of the integers of the definition of BAS, spelt out in Section 65(19), then it would be legitimate to conclude that BAS is provided."

9. We are of the view that the liability to BAS will need to be carefully re-examined in the light of the

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Larger Bench decision of the Tribunal and the nature of activities rendered by the appellant will need to be examined by considering the various contracts examined by the appellant with Banks and NBFCs. In view of the above, the impugned order is set aside and matter remanded to the original authority. The appellants will be at liberty to put forth their case before passing order in the denovo proceedings. 10. In the result, the appeal is allowed by way of remand.
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