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2018 (6) TMI 1159 - AT - Service TaxValuation - Mailing List Compilation and Mailing Services - inclusion of franking cost in assessable value - Held that:- The costs related to franking are paid directly to the Post Master General by the appellant’s clients or are otherwise paid by the appellant and subsequently, reimbursed by the said clients. Therefore, it cannot be alleged that the said charges are accruing to the appellants - the franking cost cannot be made part of the value of taxable service. Business Auxiliary Services - rebate received from the postal department - Held that:- It cannot be treated as a commission or an amount received for promoting the postal services. Such incentives are given by the postal authority to encourage use of franking machines, especially where the volumes are above a certain threshold level - these are required to be taxed under Business Auxiliary Services. Appeal allowed - decided in favor of appellant.
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