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2019 (6) TMI 684 - AT - Service TaxClassification of services - Business support service or not - multi-level marketing of the goods - HELD THAT:- The appellant is primarily engaged in marketing/selling of business kits mainly containing suit lengths with certain other promotional documents. This activity of marketing/selling is more akin to multi-level marketing system. The other activities undertaken by the appellant are for its own business promotion and not for BSS to the distributors. It is a matter of record that the appellant has sold its products directly to the end consumers (new persons) introduced by the existing distributors, who as per the scheme become distributor of the appellant by virtue of purchase of their product, namely, suit length. It can easily be inferred that the Business Support Service includes the activities which support the main business activity like service of providing infrastructure for running an office or a business and like activities - In the present case the appellant has adopted a marketing strategy for sale of its product and has not solicited or provided any Business Support Service to the distributors. It is also relevant that the payments which have been received by the appellant is for sale of its product, namely suit length of various brands on which it has paid the applicable Sales Tax/VAT to the State Government. The activity undertaken by the appellant is primarily a sale of goods and there is no element of Business Support Services for Business or Commerce - appeal allowed - decided in favor of appellant.
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