w w w . L a w y e r S e r v i c e s . i n



Ichibaan Automobiles (P) Ltd V/S Commissioner of Service Tax, Mumbai-I


Company & Directors' Information:- N E C C AUTOMOBILES PRIVATE LIMITED [Active] CIN = U74899DL1991PTC043600

Company & Directors' Information:- C M AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50300CH2005PTC028233

Company & Directors' Information:- J P M AUTOMOBILES LIMITED [Active] CIN = U74899DL1995PLC068910

Company & Directors' Information:- K N AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50404OR2013PTC016730

Company & Directors' Information:- J AND K AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50401JK2004PTC002447

Company & Directors' Information:- ICHIBAAN AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50101DL1997PTC089020

Company & Directors' Information:- K. S. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50300RJ2009PTC028204

Company & Directors' Information:- K N R AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50300WB2006PTC111199

Company & Directors' Information:- K P AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50404JH2012PTC000824

Company & Directors' Information:- Y J AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50401MP2013PTC031920

Company & Directors' Information:- N S AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50102MH2012PTC226814

Company & Directors' Information:- S K S AUTOMOBILES INDIA PRIVATE LIMITED [Strike Off] CIN = U50100TZ2009PTC014979

Company & Directors' Information:- J D AUTOMOBILES PVT. LTD. [Strike Off] CIN = U34300WB1987PTC042066

Company & Directors' Information:- B K AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50200AP2009PTC064484

Company & Directors' Information:- N. K. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50102GJ2006PTC049307

Company & Directors' Information:- G M S AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50101DL1997PTC089284

Company & Directors' Information:- N U AUTOMOBILES PVT LTD [Active] CIN = U74899DL1982PTC013126

Company & Directors' Information:- D K AUTOMOBILES PRIVATE LIMITED [Active] CIN = U29246CH1989PTC009607

Company & Directors' Information:- K Y AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50400JK2021PTC012549

Company & Directors' Information:- A K AUTOMOBILES LIMITED [Amalgamated] CIN = U34100WB1984PLC038001

Company & Directors' Information:- A AND S AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U51103DL1997PTC085147

Company & Directors' Information:- M. H. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50200HP2015PTC000946

Company & Directors' Information:- R. K. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071719

Company & Directors' Information:- R. J. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50100BR2020PTC047409

Company & Directors' Information:- M R AUTOMOBILES (INDIA) PRIVATE LIMITED [Active] CIN = U34300DL1998PTC094488

Company & Directors' Information:- V. M. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U35911UP1995PTC018136

Company & Directors' Information:- P D AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50400RJ2021PTC074633

Company & Directors' Information:- A R AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U50404PY2011PTC002555

Company & Directors' Information:- K P V AUTOMOBILES PVT LTD [Active] CIN = U50300KL1991PTC006035

Company & Directors' Information:- J B S AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U34101OR2005PTC008397

Company & Directors' Information:- S. N. S. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50500WB2018PTC224868

Company & Directors' Information:- M P AUTOMOBILES PVT LTD [Strike Off] CIN = U50404MP1957PTC000842

Company & Directors' Information:- G. E. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50400DL2018PTC341171

Company & Directors' Information:- P K AUTOMOBILES PVT LTD [Strike Off] CIN = U50300UP1979PTC004841

Company & Directors' Information:- P L AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50300RJ2014PTC046516

Company & Directors' Information:- S G K R AUTOMOBILES PRIVATE LIMITED [Active] CIN = U60210TN1960PTC004283

Company & Directors' Information:- N R AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U50400MH2014PTC255882

Company & Directors' Information:- S. N. J. AUTOMOBILES PRIVATE LIMITED [Active] CIN = U50400MH2017PTC299238

Company & Directors' Information:- M R K AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U50102UP2011PTC045868

Company & Directors' Information:- I B AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U29253DL2008PTC172205

Company & Directors' Information:- T K AUTOMOBILES PRIVATE LIMITED [Active] CIN = U74899DL1984PTC017940

Company & Directors' Information:- V R AUTOMOBILES PRIVATE LIMITED [Active] CIN = U34200DL2007PTC170076

Company & Directors' Information:- K T AUTOMOBILES PVT LTD [Strike Off] CIN = U99999UP1959PTC002730

Company & Directors' Information:- M B AUTOMOBILES PVT LTD [Strike Off] CIN = U35923WB1966PTC026743

Company & Directors' Information:- B M AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U50200DL2007PTC162611

Company & Directors' Information:- H A AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U34102DL2007PTC163030

Company & Directors' Information:- P A AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U34101DL2007PTC161483

Company & Directors' Information:- K G AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U34200DL2007PTC162859

Company & Directors' Information:- P R AUTOMOBILES PRIVATE LIMITED [Strike Off] CIN = U34201DL2007PTC161053

Company & Directors' Information:- AUTOMOBILES PVT. LTD. [Strike Off] CIN = U99999DL2000PTC000916

    Appeal No. ST/141/12 (Arising out of Order-in-Original No. 454/37/V/2011/COMMR/KS/ST dated 20th December 2011 passed by the Commissioner of Central Excise, Mumbai-V)

    Decided On, 12 June 2017

    At, Customs Excise Service Tax Appellate Tribunal West Zonal Bench At Mumbai

    By, THE HONORABLE JUSTICE: M.V. RAVINDRAN
    By, MEMBER AND THE HONORABLE JUSTICE: C.J. MATHEW
    By, MEMBER

    For Petitioner: Aparna Hirandagi, Advocate And For Respondents: M.P. Damle, Assistant Commissioner (AR)



Judgment Text


1. Appellant, M/s. Ichibaan Automobiles (P) Ltd., is before us challenging the order-in-original No. 454/37/V/2011/COMMR/KS/ST dated 20th December 2011 of Commissioner of Central Excise, Mumbai V which has held the assessee to be liable to tax of Rs. 94,15,180 for rendering of business auxiliary service taxable under section 65 (105) (zzb) of Finance Act, 1994, interest thereon, and penalty of like amount under section 78 of Finance Act, 1994.

2. The appellant, a dealer of cars manufactured by M/s. Honda Siel Cars Ltd., also acts as direct sales agent for various financing companies by referring customers who seek to finance their vehicles. A part of the commission earned for such referrals is sometimes surrendered to enable reduction in interest rates charged on the customer by the financier, the latter does not forgo any of the interest receivable. The show cause notice alleged that an amount of Rs. 9,59,01,534 had not been subjected to tax owing to non-inclusion of this surrendered portion in the value of gross commission received. The appellant, on the other hand, contended that it had received a commission of Rs. 6,72,49,754 on which tax had been paid and that the amount now covered in the show cause notice had never been received by them as commission. Notwithstanding this plea, the adjudicating authority upheld the liability to tax and imposed penalty leading to this appeal.

3. We have heard Learned Counsel for appellant and Learned Authorised Representative. Learned Counsel placed before us a number of decisions relating to gross value of taxable service which was the sole ground in the impugned order for confirming the recovery of short paid tax. Among the decision cited was that of the Tribunal in Toyota Lakozy Auto Pvt. Ltd. v. Commissioner of Service Tax & Central Excise, Mumbai-II/Mumbai-V [2016-TIOL-3152-CESTAT-MUM].

4. In the above cited decision, an identical dispute had been examined and we have noted that the manner in which the money flows between the various parties is critical for determining the rendering of a service, and consideration thereof, as well as the taxability of the service. Only a detailed examination of the transactions would isolate the components thereof for merging the disputed amount with the business auxiliary service rendered to financing companies. We take note that the impugned order has not done so and has merely assumed that the unaccounted amount was taxable by reference to gross value. The relevant observation in the impugned order

"8. It appeared that M/s. IAPL had been providing Business Auxiliary services from their various branches, situated at Andheri (Head office) Worli, Lower Parel and Chembur. They had obtained centralized registration No. AAAC 19959FST001 from the office of the Assistant Commissioner, Service Tax, having jurisdiction of the head office situated at Metro Estate, Kalina, CST Road, Santacruz (E), Mumbai-400 098, for all the taxable services being provided by them. From the forging facts, it appeared that M/s. IAPL had failed to arrive at the correct value of taxable services and also failed to pay corr

Please Login To View The Full Judgment!

ect Service Tax, resulting in to short payment of Service Tax." is ample demonstration. That uncovered gap must be bridged. 5. In line with the decision in re Toyota Lakozy Auto Pvt. Ltd., we set aside the impugned order and remand the matter back to the original authority to reconsider the matter in the light of the above observations.
O R