The applicant is an authorised agent of Mercedes Benz India and is engaged in supply of car, spare parts and services. The applicant purchases demo cars from MB India and such cars are kept for demonstration and test drive purposes for a specific period of time. After completion of specified cars, such demo cars are purchased by the applicant from MB India and sold further to the end customer. Loss on sale of such demo cars, if any, is reimbursed by the MB india to the applicant.