Commission for sales promotion activity qualifies as Business Auxiliary Service and remains taxable.

Commission linked to promoting and marketing Amway products through a sales group was treated as consideration for Business Auxiliary Service under the Finance Act, 1994. The Tribunal applied the settled view that where commission is paid for sales promotion activity for a client's products, it falls within the taxable service definition. Finding the facts identical to earlier decided cases, the Tribunal saw no basis to depart from that principle and sustained the service tax demand.

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Issues: Whether commission received from Amway on sales-linked business activity was taxable as consideration for Business Auxiliary Service under the Finance Act, 1994.

Analysis: The commission was held to be linked to the appellant's activity of promoting and marketing Amway products through the sales group, which fell within the definition of Business Auxiliary Service. The Tribunal applied the settled view that such commission, when connected with sales promotion activity for the client's products, constitutes taxable consideration. Finding the facts identical to earlier decided cases, the Tribunal found no reason to depart from that view.

Conclusion: The commission was taxable as Business Auxiliary Service and the demand was sustained.

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