Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1066 - AT - Service TaxSharing of expenses - Business Auxiliary Service - promotion of business of group companies - expenses relating to sales, marketing and general business promotion of all the group companies and the said expense was shared in proportion to the turnover, with the said group companies - Held that: - The appellant is not per-se engaged in promoting sales or business of group companies. No evidence to that effect has been brought out. In fact, the arrangement is all group companies will benefit from a sales promotion and other related activities of third parties, for which expenses are to be borne by the appellant and thereafter to be shared with other group companies. In such arrangement, there is no scope for tax liability on the part of the appellant under the category of BAS. The Hon’ble Supreme Court in Gujarat State Fertilizers and Chemicals Ltd. and Anr. Vs. CCE [2016 (12) TMI 103 - SUPREME COURT], examining a similar set of facts, held that sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement. There is no taxable service in the arrangement as discussed in the present appeal - appeal allowed - decided in favor of appellant.
|