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TMI Blog2024 (8) TMI 1406X X X X Extracts X X X X X X X X Extracts X X X X ..... count in this case are cash discount and received in view of early payments made to the principles and are linked to the number of days by which payment is made early and has no relation with the consideration received for rendering the service in the form of commission under the category of Business Auxiliary Services .' Thus, the demand is not sustainable. Accordingly, the impugned order is set aside - appeal allowed. - HON'BLE MEMBER ( JUDICIAL ) , MR. RAMESH NAIR And HON'BLE MEMBER ( TECHNICAL ) , MR. C. L. MAHAR Shri. Saurabh Dixit , Advocate for the Appellant Shri. Anoop Kumar Mudvel , Superintendent ( AR ) for the Respondent ORDER RAMESH NAIR The brief facts of the case are that the appellant was engaged as a Del-Creder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iance Industries Ltd in respect of early payment of the goods sold to the customer. The same is liable to Service Tax under Business Auxiliary Service. 2. Shri. Saurabh Dixit, Learned Counsel appearing on behalf of the appellant at the outset submits that M/s Reliance Industries Ltd has appointed many similar Del-Credere Agent and the same arrangement is made with all the Del-Credere Agent. He submitted that in respect of some of the Del-Credere Agent of M/s. Reliance Industries Ltd., the department had demanded the service tax which subsequently were set aside in various judgments. He placed reliance on the following judgments:- M/s. Tradex Polymers P. Ltd. 2014(34) STR 416 (Tri-Ahmd) M/s. Khanna Polymers 2017 (47) STR 82 (Tri-All) P. Gaut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down the ratio that any incentive/cash discount which has been given will not be covered for liability of Service Tax under Business Auxiliary Service. We may reproduce the relevant paragraphs No. 7 8 below. 7. On perusal of the impugned orders, we find that in para 8, learned Commissioner (Appeals) has recorded the following findings. 8. The whole issue revolves around the question as to whether service tax is leviable on the discounts/incentives that the appellants (an advertising agency) receive from the print media for the advertisements that the former get published on behalf of clients. The argument advanced by the appellants is that no service tax can be leviable thereon as this is not a service provided to their clients. From the em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out by the learned counsel that the Coordinate Bench of the Tribunal in the three cases as cited herein above, have held that the discounts/incentives received by the assessee from the print media will not be liable for service tax under the category of advertising agency services. If that be so, the said discounts/incentives itself cannot be considered for the purpose of taxability under the head business auxiliary services as the amounts which are received are in respect of the services provided under the category of advertising agency services and the amount are discounts and incentives and not as charges for services. 4. In view of the above ratio and peculiar facts of this case, we find that the impugned order is liable to be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heard the learned Counsel who has stated that the appellant is Del- Credere agent as per the agreement. The appellant is responsible for both sale of the goods and recovery of the payment. For sale of the goods appellant received commission, paid Service Tax on such commission and there is no dispute about the same. The terms of payment are that the payment should be made within 14 days by the purchaser and if the purchaser makes early payment the purchaser gets cash incentive at the rate of Rs. 35/- per metric ton per day. The assessee made payment to Reliance Industries Ltd. from his own funds even before receipt of payment from purchaser and received cash incentive from Reliance Industries Ltd. The Department contends that the cash incen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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