SAGAR AUTOMOBILES Vs. COMMISSIONER OF CENTRAL EXCISE, BANGALORE

JUDGEMENT

(1.) THE Miscellaneous application pertains to prayer seeking for condonation of delay of 6 days in filing this appeal. We have heard both sides and find that as the delay is marginal, therefore, the application for condonation is allowed.

(2.) THE appellant is required to pre -deposit Service Tax of Rs. 7,09,142/ -, Education Cess of Rs. 4,731/ - and penalty of Rs. 100/ - per day. They are dealers for the Maruti Udyog Limited. They have discharged duty under the category of Business Auxiliary Services for receiving commission on promotion of extended warranty coupons. The said coupons were sold to the customers of the Maruti Udyog Limited through their dealers. The Revenue has proceeded to charge Service Tax on these coupons. The authorities have confirmed the Service Tax on the appellants and the appellants are contesting the same on the ground that for promoting the business, they have already discharged Service Tax. So far as sale of book -let is concerned, the Service Tax has to be discharged by the Maruti Udyog Limited. They have not received the consideration for the sale of book -let, as the book -let has been sold by the Maruti Udyog Limited through their dealers. Therefore, the Service Tax has to be discharged by Maruti Udyog Limited.

(3.) WE heard both sides.