TRICITY AUTOS Vs. COMMISSIONER OF C. EX. & S.T.
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Commissioner of C. Ex. And S.T.
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ASHOK JINDAL,J -
(1.)THE appellant is in appeal against the impugned order wherein Cenvat credit of service tax paid on the free services provided by the service provider on behalf of the appellant has been denied on the premise that the appellant is not providing any service or not receiving any service at all.
(2.)The brief facts of the case are that the appellant is an authorized dealer of Maruti Suzuki Ltd. As per the sale policy of the vehicles, three free services are to be provided by the dealer of the vehicle. In the case, the appellant (themselves) are providing free service to the customer on these three free service coupons, there is no dispute. In some cases, the buyer of the vehicle availed the services of authorized service station of Maruti Suzuki Ltd. on behalf of the appellant and the service provider (the authorized service station) issues the invoice on the appellant being an authorized dealer provides the free services to buyer and the appellant availed Cenvat credit of service tax paid to the authorized service station.
Revenue is of the view that the appellant neither received the service nor provided any service, therefore, not liable to take Cenvat credit on the basis of said invoice. Therefore, the proceedings were initiated, demand was confirmed along with interest, penalties are also imposed. Aggrieved from the said order, the appellant is before me.
(3.)THE ld. Counsel for the appellant submits that the authorized service station is providing free service to the buyer of the vehicle on behalf of the appellant. As appellant is a registered dealer who sold the vehicle to the buyer. Therefore, invoice is raised in the name of the appellant by the service provider as he has provided services on behalf of the appellant. Therefore, the appellant is the service receiver and consequently service tax paid by the appellant is entitled to the Cenvat credit.
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