https://www.taxtmi.com/caselaws?id=774147 CESTAT NEW DELHI held that incentives and discounts received by authorized vehicle dealers from manufacturers are not chargeable to service tax as they do not constitute consideration for Business Auxiliary Service. Following precedents from CESTAT Mumbai and Allahabad, the tribunal determined these payments are made on principal-to-principal basis and fall outside service tax regime. The adjudicating authority wrongly confirmed service tax demand. Since no service tax was payable, interest under section 75 of Finance Act 1994 and penalties were also unsustainable. Appeal allowed, impugned order set aside. en-us Wed, 02 Jul 2025 00:00:00 +0530 Fri, 04 Jul 2025 08:38:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774147 CESTAT NEW DELHI held that incentives and discounts received by authorized vehicle dealers from manufacturers are not chargeable to service tax as they do not constitute consideration for Business Auxiliary Service. Following precedents from CESTAT Mumbai and Allahabad, the tribunal determined these payments are made on principal-to-principal basis and fall outside service tax regime. The adjudicating authority wrongly confirmed service tax demand. Since no service tax was payable, interest under section 75 of Finance Act 1994 and penalties were also unsustainable. Appeal allowed, impugned order set aside. Case-Laws Service Tax Wed, 02 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774147