Service Tax not leviable on discounts offered by car manufacturers to their dealers for onward transmission to corporate customers


Last updated: 14 September 2021

Court :
CESTAT, Mumbai

Brief :
In AUTOBAHN ENTERPRISES PVT. LTD. v. COMMISIONER OF SERVICE TAX, [FINAL ORDER NO: A /8673 /2021 dated September 07, 2021], Autobahn Enterprises Pvt. Ltd. ("the Appellant")was an authorized dealer of M/s Skoda Auto India Pvt Ltd. and in accordance with their agreements, the  Appellant  was allowed to offer discounts on the sale of vehicles to their corporate customers to be reimbursed to them and had facilitated banks and financial companies, as well as insurance companies, to service loan and insurance requirements of customers from their premises.

Citation :
FINAL ORDER NO: A /8673 /2021 dated September 07, 2021

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