TMI Blog2018 (2) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... between the manufacturer M/s. Gunaji and the appellant is clearly of sale. In the invoice the manufacturer has charged 20% VAT the transaction is clearly at arms length hence sale transaction on principle to principle basis. From the invoice, it is also observed that a trade discount was passed on by the manufacturer to the appellant - As per this undisputed fact once, the transaction is of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the product Jarda (Chewing Tobacco) under the brand name of Sarvotkrusht Nagpuri Jarda manufactured by M/s. Gunaji Marotrao Thaokar Co. In this regard the appellant M/s. Gunaji entered into an agreement and one of the condition is that the manufacturer M/s. Gunaji gives discount to the appellant while supplying the goods for further distribution. The case of the department is that the said d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s customers, the transaction between the manufacturer and the appellant is one of sale. During the sale of goods whatever discount was extended by the manufacturer M/s. Gunaji to the appellant is trade discount and the same is not a commission. Therefore there is no question of service tax on the said trade margin. In this regard, he refer to the agreement between the manufacturer M/s. Gunaji and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olesale Distributor shall take possession of the goods from the factory gate and shall transport the same to its godowns at its own expenses. It is observed from the above para that after supply of goods by the manufacturer the ownership of goods is transferred to the wholesale distributor who is the appellant here. The sales invoice raised by the manufacture is scanned below: From th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant also, after purchase of goods from the manufacturer further sold to various traders. A copy of the sale invoice issued by the appellant is scanned below: From the above invoice it can be seen that it is clearly a sale invoice under which the appellant also paid the VAT. This shows that the transaction from the manufacturer to the appellant and subsequent from appellant to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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