CESTAT rules buying and reselling recharge coupons not commission agent service

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the appellant, finding that their activity of buying and reselling recharge coupons did not qualify them as a commission agent under Business Auxiliary Service. The tribunal deemed the tax demand unsustainable, especially considering a similar demand in Mangalore was dropped. Consequently, the stay application was allowed.

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The Appellate Tribunal CESTAT, New Delhi heard both sides and perused the record. The appellant's activity of buying/reselling recharge coupons for telephone calls is not considered commission agent under Business Auxiliary Service. Tax demand is not sustainable, similar demand in Mangalore was dropped. Stay application is allowed.

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