Madras High Court Stays Levy of Service Tax on Amount Received by Automobile Dealers for Arranging Vehicle Finance On a petition filed by FADA, the Madras High Court vide its order dated 3rd January 2005 has granted a stay on levy and collection of Service Tax on the amount/incentive received by automobile dealers from banks/non-banking finance companies for arranging vehicle finance. The next hearing in the case is scheduled for 14th Mar'05. FADA in its petition had averred that automobile dealers are not into the business of promoting the sale of finance on behalf of the banks/non-banking finance companies. Arranging vehicle finance is an incidental activity undertaken by the automobile dealers with the ultimate aim of promoting sale of their vehicles.