TMI Blog2017 (7) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... ess auxiliary service has been settled by the judgment in the case of THE COMMISSIONER OF CENTRAL EXCISE VERSUS M/S. BHARAT CELL [ 2015 (10) TMI 1111 - MADRAS HIGH COURT] wherein the ratio of the decision laid down in GR. MOVERS AND MARTEND FOOD AND DEHYDRATES PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, LUCKNOW [ 2013 (6) TMI 339 - CESTAT NEW DELHI ] was referred. The other decisions of the honourable High Courts of Allahabad as well as Kerala have taken similar view. The demand also includes the amount reflected in the credit notes issued by M/s. VCL to appellant. The demand is also made on the margin earned by the appellant for outright purchase and sale of pepsico products. It is not disputed that the appellants in these ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arge vouchers and electronic coupons, starter packs is a discount or commission provided by M/s. VCL and therefore issued show-cause notice demanding service tax on the margin earned by the appellant on such resale. It was alleged that the appellants are providing business auxiliary service as per the contract between M/s. VCL and the appellant. After due process of law, the original authority confirmed the demand along with interest and also imposed penalties. In appeal, Commissioner (Appeals) confirmed the demand on the said margin, though there was certain reduction in the quantification of demand in some appeals. The penalty imposed under section 76 was set aside and the penalty imposed under section 78 was ordered to be reduced accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised on the credit notes issued by M/s. VCL to appellants. That these credit notes are alleged to be discounts received by appellant on the sale of starter pack vouchers, etc. He explained that the credit notes were only reimbursement of expenses like Customer Activation Form (CAF), pick up charges on actuals, payment of salary to employees, starter pack price difference, RTGS charges incurred by appellant, sales scheme expenses, etc. That on the value of the alleged credit note M/s. VCL has already paid service tax. That such reimbursable expenses cannot in any way be included in the taxable value. To canvass this proposition, he relied upon the judgment of the honourable High Court of Madras in the case of Commissioner of Service Tax v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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