Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (11) TMI 684 - AT - Service TaxLevy of service tax - business auxiliary services or not - difference between the purchase price and sale price that is reimbursed to the distributors by M/s Tata Tele-Services Ltd. in the guise of subsidy - HELD THAT:- Reliance placed upon the decision of this Tribunal in BALAJI ENTERPRISES VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, JAIPUR-I [2020 (3) TMI 17 - CESTAT NEW DELHI] where it was held that The subsidy, on the other hand, is paid to the Appellant by Tata Tele Services to compensate for the loss incurred by the Appellant on the sale of mobile handsets at a lower price and cannot be said to have any relation to the service of promotion or marketing. Thus, in the absence of any services provided by the Appellant to Tata Tele Services, service tax could not have been levied on the amount of subsidy received by the Appellant. Appeal allowed.
|