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2019 (6) TMI 566 - CESTAT MUMBAIClassification of services - non competition fee - Support Service of Business or Commerce or not - appellant had arrangement with some dealers to market the product on their behalf and collect the sale proceeds for them - HELD THAT:- The defense put up by the appellant before us in their grounds of appeal is that the amount collected by the appellant from M/s Rajendra Trading Company as well as from other dealers of Badshah Khaini are in the nature of fees relating to discourage of competition in promoting the sales of the said dealers/retailers. It is the contention of the appellant that such fees cannot be considered as consideration towards rendering Support Service of Business or Commerce. This Tribunal in M/S JAMNA AUTO INDUSTRIES LTD. VERSUS CCE, INDORE [2017 (9) TMI 228 - CESTAT NEW DELHI] has considered the issue in similar circumstance and observed that there cannot be any doubt that the appellant’s action and activity of ‘entering into non-compete agreement with JSSL’ is nothing but a service covered by ‘support service of business and commerce’ as defined under Section 65(104c) read with Section 65(105) of Finance Act, 1994 and therefore, the consideration received for the said services is accordingly taxable. There are no reason to deviate from the aforesaid findings of the Tribunal. Besides, the Commissioner while recording the opinion that the services rendered by the appellant who are having necessary infrastructure facilities is also in the nature of Support Service of Business or Commerce has confirmed the demand - In their grounds of Appeal the Appellant has not rebutted the said finding of the Commissioner. There are no merits in the appeal - appeal dismissed.
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