https://www.taxtmi.com/caselaws?id=449668 CESTAT Chennai ruled in favor of appellant regarding service tax demands on multiple issues. The tribunal held that incentives received from Volkswagen and Castrol were not consideration for business auxiliary services but were based on sales targets for appellant's own profit, not service promotion. Service tax demand on forfeited advance amounts from cancelled car bookings was unsustainable, following precedents that such forfeitures don't constitute taxable services. The tribunal rejected department's claim requiring 5-7% payment on exempted services value when appellant had already reversed proportionate CENVAT credit under Rule 6(3A)(ii). Regarding pre-2015 liability, since appellant company existed only from 2015, no service tax liability could arise for prior periods. The impugned order was set aside and appeal allowed. en-us Mon, 05 Feb 2024 00:00:00 +0530 Wed, 06 May 2026 13:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449668 CESTAT Chennai ruled in favor of appellant regarding service tax demands on multiple issues. The tribunal held that incentives received from Volkswagen and Castrol were not consideration for business auxiliary services but were based on sales targets for appellant's own profit, not service promotion. Service tax demand on forfeited advance amounts from cancelled car bookings was unsustainable, following precedents that such forfeitures don't constitute taxable services. The tribunal rejected department's claim requiring 5-7% payment on exempted services value when appellant had already reversed proportionate CENVAT credit under Rule 6(3A)(ii). Regarding pre-2015 liability, since appellant company existed only from 2015, no service tax liability could arise for prior periods. The impugned order was set aside and appeal allowed. Case-Laws Service Tax Mon, 05 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449668