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2014 (9) TMI 386 - AT - Service TaxBusiness support services - nature of trade discount of 3% when goods are supplied by the seller to the purchaser directly - they purchase the goods from the village industry units and supply the same to the PSUs. However, the goods are directly consigned by the village industrial units directly to the PSUs so as to minimize the cost of transportation. However, the village industrial units raise the bill on the appellant and the appellant in turn raises the bill on the PSUs. The appellant gets the trade discount of 3% of the values of their purchase. The said discount is for the purpose of meeting the operational costs of the appellant which is a non-profit organization. Held that:- Nevertheless the transaction undertaken by the appellant is one of purchase and sale of goods; in other words it is simple trading. Therefore, the trade margin obtained by the appellant is not in the nature of a commission. Therefore, we are of the view that the activity undertaken by the appellant cannot be classified as business support services attracting levy of service tax. However, as contended by the appellant that they were not able to produce before the adjudicating authority, the documentary evidences (purchase and sales invoices) in support of their claim that the activity undertaken was trading. Therefore, the matter has to go back to the adjudicating authority for fresh consideration. - matter remanded back.
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