https://www.taxtmi.com/caselaws?id=356193 A discount passed by a manufacturer to a wholesale distributor was held to be trade discount, not commission taxable as business auxiliary service, because the arrangement showed a genuine principal-to-principal sale. Ownership passed after supply, the distributor took delivery at the factory gate, and invoices reflected VAT on sale transactions. On these facts, the amount formed part of the trading margin and was not consideration for any service. As there was no service provider-service recipient relationship, service tax could not be levied on the discount, and the demand was unsustainable. en-us Mon, 29 Jan 2018 00:00:00 +0530 Mon, 18 Feb 2019 11:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356193 A discount passed by a manufacturer to a wholesale distributor was held to be trade discount, not commission taxable as business auxiliary service, because the arrangement showed a genuine principal-to-principal sale. Ownership passed after supply, the distributor took delivery at the factory gate, and invoices reflected VAT on sale transactions. On these facts, the amount formed part of the trading margin and was not consideration for any service. As there was no service provider-service recipient relationship, service tax could not be levied on the discount, and the demand was unsustainable. Case-Laws Service Tax Mon, 29 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356193