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2022 (8) TMI 1254 - AT - Service TaxLevy of Service Tax - Business Auxiliary Service - incentives and discount support received by the appellant - consideration for sales promotion activity for the manufacturer (TML) or not - period April, 2013 to June, 2017 - HELD THAT:- It is noticed that the appellant purchases vehicles from TML and sells the same to the buyers. It is clear from the agreement that the appellant works on principal to principal basis, and not as an agent of TML. This is for the reason that the agreement itself provides that the appellant has to undertake certain sales promotion activities as well. The carrying out of such activities by the appellant is for the mutual benefit of the business of the appellant, as well as the business of TML. The position in this regard is fairly settled as held by the Hon’ble Supreme Court in the matter of case of MOPED INDIA LIMITED VERSUS ASSISTANT COLLECTOR OF C. EX., NELLORE AND OTHERS [1985 (2) TMI 42 - SUPREME COURT].The amount of incentives and discount support received on such account cannot, therefore, be treated as consideration for any service. The incentives and discount support received by the appellant cannot, therefore, be leviable to service tax. The service tax on the amount received as incentives could not, therefore, have been levied to service tax - Appeal allowed - decided in favor of appellant.
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