https://www.taxtmi.com/highlights?id=88428 CESTAT adjudicated a service tax dispute involving a first-line distributor's commission from a product company. The tribunal determined that the distributor's commission for identifying and sponsoring second-level distributors constitutes Business Auxiliary Service, rendering the commission taxable. Despite the distributor's claim of no profit margin, the tribunal found evidence of performance-linked commission. The tribunal invoked extended limitation period, concluding the non-payment of service tax represented deliberate duty evasion. The appellant failed to substantiate alternative claims, and the original tax demand was upheld. The appeal was consequently dismissed, confirming the service tax liability on the distributor's commission. en-us Fri, 16 May 2025 08:40:38 +0530 Fri, 16 May 2025 08:40:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=88428 CESTAT adjudicated a service tax dispute involving a first-line distributor's commission from a product company. The tribunal determined that the distributor's commission for identifying and sponsoring second-level distributors constitutes Business Auxiliary Service, rendering the commission taxable. Despite the distributor's claim of no profit margin, the tribunal found evidence of performance-linked commission. The tribunal invoked extended limitation period, concluding the non-payment of service tax represented deliberate duty evasion. The appellant failed to substantiate alternative claims, and the original tax demand was upheld. The appeal was consequently dismissed, confirming the service tax liability on the distributor's commission. Highlights Service Tax Fri, 16 May 2025 08:40:38 +0530 https://www.taxtmi.com/highlights?id=88428