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2015 (12) TMI 84 - AT - Service TaxDemand of service tax - returned / rejected services - In respect of the Commission, originally received and subsequently rejected, the appellant did not pay any service tax - Business Auxiliary service - Commission agent franchisee service - Held that:- assessee was initially paid the commission and the subsequent rejection of the said commission has to be treated as penal in character in which case it has to be held as if the appellant has received the service consideration. However, we find no merit in the above contention of the Revenue. The said rejection of commission is only in respect of those services which were not fully completed by the appellant. The Commission is to be received by the assessee only on full completion of the services. There is also no indication in the agreement so as to show that the “rejection commission” is penal in character. At this stage, we also take note of the Hon’ble Punjab & Haryana High Court decision in the case of Commissioner of Central Excise and Service Tax, Jallandhar v. Janta Travels Pvt. Ltd. reported in [2008 (8) TMI 187 - PUNJAB AND HARYANA HIGH COURT ] wherein it was held that the service of air travel agent having been provided but consequently ticket having been cancelled and the Commission returned, is required to be treated as if no service was rendered. The ratio of the above decision is fully applicable to the facts of the present case - Decided in favour of assessee.
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