https://www.taxtmi.com/caselaws?id=328657 Contract bottling arrangements were examined to determine whether a brand owner provided taxable Business Auxiliary Services to bottling units. The agreement showed that the bottlers manufactured IMFL for fixed consideration per case, while the brand owner controlled sales, distribution, quality support, procurement assistance and receipt of sale proceeds. Reading the Board's clarification dated 27.10.2008, the arrangement was treated as complete manufacture by contract bottlers, outside Business Auxiliary Services; liability would arise only where the activity did not amount to manufacture. The retained amount was treated as business profit, not consideration for a taxable service, so the demand and penalties were held unsustainable. en-us Thu, 02 Jun 2016 00:00:00 +0530 Fri, 31 Aug 2018 15:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328657 Contract bottling arrangements were examined to determine whether a brand owner provided taxable Business Auxiliary Services to bottling units. The agreement showed that the bottlers manufactured IMFL for fixed consideration per case, while the brand owner controlled sales, distribution, quality support, procurement assistance and receipt of sale proceeds. Reading the Board's clarification dated 27.10.2008, the arrangement was treated as complete manufacture by contract bottlers, outside Business Auxiliary Services; liability would arise only where the activity did not amount to manufacture. The retained amount was treated as business profit, not consideration for a taxable service, so the demand and penalties were held unsustainable. Case-Laws Service Tax Thu, 02 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328657