https://www.taxtmi.com/caselaws?id=771097 CESTAT New Delhi ruled that incentives, discounts, or reimbursements paid by a motor vehicle manufacturer to its authorized dealer under a principal-to-principal dealership agreement are not subject to service tax. The tribunal held that the relationship between manufacturer and dealer is buyer-seller, with incentives constituting trade discounts forming part of vehicle sale price rather than consideration for services. The activity involves transfer of property in goods, excluded from service definition, and falls under "trading of goods" in the negative list under Section 66D. Appeals were allowed and impugned orders set aside. en-us Fri, 16 May 2025 00:00:00 +0530 Wed, 21 May 2025 08:29:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771097 CESTAT New Delhi ruled that incentives, discounts, or reimbursements paid by a motor vehicle manufacturer to its authorized dealer under a principal-to-principal dealership agreement are not subject to service tax. The tribunal held that the relationship between manufacturer and dealer is buyer-seller, with incentives constituting trade discounts forming part of vehicle sale price rather than consideration for services. The activity involves transfer of property in goods, excluded from service definition, and falls under "trading of goods" in the negative list under Section 66D. Appeals were allowed and impugned orders set aside. Case-Laws Service Tax Fri, 16 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771097