Vehicle registration services rendered by motor car dealer to its buyers aren’t ‘Business Support Services’

Rendering of assistance by a motor car dealer to its buyers in getting motor vehicle registration done cannot, prima facie, be regarded as 'Business Support Services'

In the instant case, the assessee, a motor car dealer, rendered services relating to registration of car to its buyers on payment of fixed charges. Such charges were used towards registration of car and excess collection, if any, was retained by the assessee. The Department sought to levy service tax on excess amount retained by assessee under 'Business Support Service' regarding it as 'transaction processing'

The Tribunal took, prima facie, the view in favour of assessee with the following observation:-

1) Prima facie the activity undertaken by the assessee does not come within the purview of 'Business Support Service';

2) The assessee was rendering assistance to its clients in getting the motor vehicle registration done. The said activity, by no stretch of imagination, could be considered as supporting the business of its customers. - My Car (Pune) (P.) Ltd. v. Commissioner of Central Excise & Service Tax [2013] 33 taxmann.com 321 (Mumbai - CESTAT)