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2017 (1) TMI 378 - AT - Service TaxBusiness Auxiliary Services - Commission earned - Held that: - reliance placed in the decision of the case Surendra Singh Rathore [2013 (8) TMI 149 - CESTAT NEW DELHI] - the demand of service tax under Business Auxiliary Service stands confirmed and it is held that service tax will be chargeable on the commission received by the distributor (such as “the appellant”) on the products purchased by his sales group. However, it has been held that the service tax is not leviable on the commission earned by the distributor on the basis of the volume of the purchases made by the group of second level of distributors appointed by FSL on being sponsored by the distributor. Extended period of limitation - Held that: - when there is scope for doubt in the mind of an assessee on a particular issue, the longer limitation period, under proviso to Section 11 A(1) cannot be invoked - demand has been restricted to the normal time limit. The issue is remanded to the Original Adjudicating Authority for restricting the demand strictly in terms of the observations and directions in this order - penalty set aside - appeal allowed by way of remand.
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