CCE, CHANDIGARH Vs. M/S. DYNAMIC MOTORS

JUDGEMENT

(1.) BEING aggrieved with the order of the Commissioner (Appeals), the Revenue has filed the present appeal. I have heard Shri S.K.Bhaskar, learned SDR appearing for the Revenue and Shri Pawan Kumar Pahwa, learned Advocate appearing for the respondent.

(2.) AS per facts on records, the respondents are authorised dealers for vehicles manufactured by General Motors and fall under the category of authorized service station. They are registered with the service tax department under the said category as also under the business auxiliary services. During the period October, 2006 to December, 2007, they also undertook the servicing of vehicles manufactured by the other manufacturers. The Revenue entertained a view that they were liable to pay service tax in respect of such servicing of vehicles i.e. other than the vehicle of General Motors. Accordingly, proceedings were initiated against them by way of issuance of show cause notices which demanded the payment of service tax of Rs. 50,010/ -,Rs. 94,463/ - and Rs. 35,995/ -.

(3.) BEING aggrieved with such dropping of demand, the Revenue challenged the said order before the Commissioner (Appeals) who referred to the definition of taxable services as per section 65(105)(zo) of the Finance Act, 1994 and definition of authorized service station as per section 65(9) of Finance Act, 1994 and held that only those services provided in respect of vehicles for which an assessee is authorized with principal manufacturer of vehicle, are liable to be taxed. He accordingly, rejected the Revenues appeal and upheld the impugned order of the original adjudicating authority. Hence, the present appeal.