JAIKA MOTORS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides. The appellant filed this appeal against the impugned order passed by the Commissioner (Appeals). The brief facts of the case are that the appellants are a dealer of motor vehicles and in the business premises the appellants provided a table space to the Banks. The appellants were receiving certain amounts where the vehicle sold by the appellant is financed by the Banks. The commission is paid by the Bank/financial companies. The case of the Revenue is that the appellants are providing business auxiliary service to the Banks/financial companies in promoting their business.

(2.) THE appellant, relying upon the decisions of the Tribunal in the case of Silicon Honda v. CCE, Bangalore reported in : 2008(13) VST 698 : 2007(7) S.T.R. 475 (Tri. -Bang.) and Shubhyan Motors Pvt. Ltd. v. CCE, : 2010(28) SIT 282, submits that mere providing a table space in the premises of the dealer cannot be considered as provider of business auxiliary service to the Banks/financial institutions. The contention is that there is no agreement with the Bank for promoting their business. The appellants are interested in selling their cars and therefore the appellants had not provided any business auxiliary service.

(3.) WE find that the issue whether the table space provided by automobile dealer to financial institutions falls under 'business auxiliary service' or not was referred to the Larger Bench in the case of Pagariya Auto Center v. CCE, Aurangabad in Appeal No. S.T./103/2010 [ : 2014(33) S.T.R. 506 (Tri. -LB)]. The Larger Bench of the Tribunal, after taking into consideration the earlier decisions, held as under: -