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2018 (2) TMI 1614 - AT - Service TaxBusiness Auxiliary Services - Discounts - case of the department is that the said discount is nothing but a sales commission which is liable to service tax under the category of Business Auxiliary Service - Held that: - the transaction between the manufacturer M/s. Gunaji and the appellant is clearly of sale. In the invoice the manufacturer has charged 20% VAT the transaction is clearly at arms length hence sale transaction on principle to principle basis. From the invoice, it is also observed that a trade discount was passed on by the manufacturer to the appellant - As per this undisputed fact once, the transaction is of sale there is no relationship of service provider and service recipient between the manufacturer and the buyer (the present appellant). Accordingly, the discount passed on by the manufacturer to the appellant cannot be construed as a commission and the same is not the subject matter of levy of service tax. A trading margin cannot be subject matter of levy of service tax. Appeal allowed - decided in favor of appellant.
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