https://www.taxtmi.com/caselaws?id=781873 CESTAT held that incentives and discounts received by the appellant from the manufacturer for achieving sales targets are in the nature of trade discounts forming part of the sale price of vehicles and not consideration for any service. Since the appellant purchases vehicles and sells them on its own account, the activity is trading of goods, which falls under the negative list in section 66D(e) of the Finance Act, 1994. Relying on the Larger Bench decision in Kafila Hospitality, CESTAT ruled that no service tax is leviable on such incentives. The impugned order was set aside and the appeal allowed, rendering the limitation issue academic. en-us Wed, 19 Nov 2025 00:00:00 +0530 Sat, 22 Nov 2025 07:36:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781873 CESTAT held that incentives and discounts received by the appellant from the manufacturer for achieving sales targets are in the nature of trade discounts forming part of the sale price of vehicles and not consideration for any service. Since the appellant purchases vehicles and sells them on its own account, the activity is trading of goods, which falls under the negative list in section 66D(e) of the Finance Act, 1994. Relying on the Larger Bench decision in Kafila Hospitality, CESTAT ruled that no service tax is leviable on such incentives. The impugned order was set aside and the appeal allowed, rendering the limitation issue academic. Case-Laws Service Tax Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781873