TMI Blog2016 (1) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... ded service to Tata Teleservices in the latter's brand name. Thus the denial of small scale exemption benefit to the appellant is unsustainable. As regards the incentive received for achieving the targets, it is; not excludible from the assessable value of the service which as per Section 67 is the gross amount received for the service rendered and it cannot be sustainably argued that such ince ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77 and ₹ 1,00,000/- under Section 78 of the Finance Act, 1944 was imposed. 2. The appellant has contended that (i) The benefit of small scale exemption was not given to the appellant. (ii) It was not providing any Business Auxiliary Service to Tata Teleservices Limited; (iii) ₹ 36340/- was received towards incentive for achieving the target and should not be include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is called franchisee agreement, the activities undertaken would fall under the category of Business Auxiliary Service. The appellant was providing service to M/s Tata Teleservices and getting paid for the same. Had it been a franchisee agreement, M/s Tata Teleservices would be provider of service and getting paid for the same. Thus, we are of the view that the appellant provided BAS taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt recovered as the incentive was with regard to achieving the target for rendering BAS only. The judgment in the case of CST, Mumbai-I vs. Sai Service Station Ltd. - 2014 (35) STR 625 (Tri. Mum.) cited by the appellant is not relevant because in that case the incentive received was for achieving target for sale of goods and was not related to service. The ld. Advocate states that if small scale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand is reduced to ₹ 9145/- and penalty under Section 78 is also reduced to ₹ 9145/-. Penalty under section 77 is sustained. However, the penalty under Section 78 will be reduced to 25% of ₹ 9145/- if the amount of service tax of ₹ 9145/- alongwith interest and reduced penalty (i.e. 25% of ₹ 9145/-) is paid within 30 days of the receipt of this order). - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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