9911796707
TMI Blog2017 (9) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- (i) The appellant is a registered assessee with the Service Tax Department. The appellant is wholesaler / volume distributor / re-seller of the products of the company namely, M/s. H P India Sales Pvt. Ltd., Bangalore. (ii) The Directorate General of Central Excise Intelligence(DGCEI), intimated the Commissioner of Service tax that distributors of M/s. H P India Sales Pvt. Ltd. (M/s. HP) were evading payment of tax on commission income disguised as trade discount. The Department's view is that M/s. H P Sales Pvt. Ltd. gives additional 1% discount to the volume distributors for providing Reseller Sell - Through Report and Inventory Reports on weekly basis to M/s. H P India Sales Pvt. Ltd. (in short HP). and said 1% additional di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) The amount received in a transaction which is chargeable to Central Excise duty cannot be subjected to Service Tax again. 5. The learned AR for Revenue reiterates the findings given in the impugned order. 6. After having carefully considered the facts of the case and the submissions made by both the sides, it appears that 1% additional discount is over and above the normal trade discount being allowed to the appellant by M/s. HP. From M/s. HP Purchase Agreement : AG420 effective dated 1.12.2003 made between the appellant and M/s. HP, we find that it specifically mentions under the title head of 'VOLUME DISTRIBUTOR PROGRAM TERMS' at clause B-7 as under: "7. Volume Distributor discounts include 1% discount for providing HP or HP's design ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t does not include any information technology service and any activity that amounts to "manufacture" within the meaning of clause (f) of section 2 of the Central Excise Act, 1944. From the above definition it is clear that any service which is in relation to promotion, marketing or sale of goods produced or provided by or belonging to the clients; as well as any service which is incidental or auxiliary to any activity which is in relation to promotion or marketing or sale of goods produced / provided by or belonging to the client would be covered under the category of 'Business Auxiliary Service'. Here, the appellant is providing Reseller Sell-Through Reports and Inventory Reports on weekly basis in specified format to M/s. HP and if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to promote their sale in the country etc. The sole purpose for provision of such service / activities are not merely related to preparation and forwarding of some reports as claimed by the noticees but are necessarily special tasks / services rendered by the noticee in relation to promotion or marketing of goods belonging to HP; for receipt of such services, HP was bearing an expenses of additional discount of 1% for promotion and marketing of their goods. Thus, such discount is nothing but is a commission provided by HP to the noticee in the guise of discount in consideration of receipt of services in relation to promotion or marketing of goods of HP. I find relationship between the noticee and HP as that the noticee is client of HP for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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