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2019 (3) TMI 1428 - AT - Service TaxLevy of service tax - Supply of Tangible Goods Service - venting of refrigerators to their dealers/ distributors - Held that:- It is an admitted fact that the appellant-assessee have delivered the refrigerator to the distributor dealer. Such dealer/ distributor is in effective control of the refrigerator post delivery. The appellant only receives an annual rent and on such a rent admittedly appellant have paid VAT/Sales Tax - the appellant is not liable to pay service tax on this activity under the category SOTG. Levy of service tax - reimbursement of advertisement expenses and other sales promotion expenses from their principal Coco-Cola Co. Ltd - Held that:- There is no element of receipt of any found toward service. Further, the appellant is not a service provider to Coca-Cola Company Ltd., they are working on principal to principal basis - decision of Tribunal in the case of Narmada Drinks (P) Ltd. Vs Commissioner of Central Excise, Raipur [2017 (3) TMI 1106 - CESTAT NEW DELHI] followed - the appellant is not liable to pay service tax on reimbursement of such expenses from Coca-Cola Company Limited. Levy of Service tax - Bundle Holding Charges under the category SOTG - Held that:- As it is true that bottles and carets are not capital goods or equipment or appliance, accordingly, no such levy of service tax is possible on the amount of penalty recovered by the appellant-assessee towards over keeping/ or detaining of the bottles and carets by their distributors - Further the receipt under this head is not for providing any service but a levy by way of panel charges on the distributors to encourage them to return the bottles and carets expeditiously back to the appellant for re-use - demand set aside. Appeal allowed - decided in favor of appellant.
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