https://www.taxtmi.com/caselaws?id=356411 Franking charges collected from clients were treated as reimbursement of a statutory postal levy under the Indian Post Office Act, 1898, not as consideration for a service rendered to the client. The Tribunal held that the postal customer was the appellant, not its client, so no real service provider-client relationship existed to attract Business Auxiliary Service tax. It further found that the rebate from the Postal Department was only an incentive for bulk mailing and workload reduction, not commission or remuneration for a taxable service. Accordingly, the service tax demand on both franking charges and rebate was not sustainable. en-us Tue, 27 Feb 2018 00:00:00 +0530 Tue, 06 Mar 2018 06:32:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356411 Franking charges collected from clients were treated as reimbursement of a statutory postal levy under the Indian Post Office Act, 1898, not as consideration for a service rendered to the client. The Tribunal held that the postal customer was the appellant, not its client, so no real service provider-client relationship existed to attract Business Auxiliary Service tax. It further found that the rebate from the Postal Department was only an incentive for bulk mailing and workload reduction, not commission or remuneration for a taxable service. Accordingly, the service tax demand on both franking charges and rebate was not sustainable. Case-Laws Service Tax Tue, 27 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356411