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2017 (4) TMI 703 - AT - Service TaxBusiness Auxiliary service - “pouring fees” from Pepsi, the soft drink company with whom they have a contractual arrangement for display and sale of various products of the client - Held that: - pouring fees as received by the appellant cannot be considered as a discount for sale transaction or as a payment for non-compete reason as given by the appellant. The indication is that it is more in the nature of fee received for promotion of Pepsi products - there is no merit in the appellant’s plea regarding non-taxability of the said consideration received by them. Extended period of limitation - penalty - Held that: - even on enquiry the appellants did not take any effort to get the issue clarified except seeking advice from Pepsi. When the appellants were showing and discharging service tax on receipts for various promotional activities it is apparent that significant portion of receipt under the category of ‘pouring fees’ received for such activities should have been included in the tax returns during the material time - extended period and penalty rightly imposed. Appeal dismissed - decided against appellant.
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