https://www.taxtmi.com/caselaws?id=787127 Incentives paid by a manufacturer to an authorised dealer for meeting sales targets are trade discounts forming part of the sale consideration and not consideration for a service; accordingly they are not taxable as Business Auxiliary Service. The analysis applies the principal-to-principal character of dealership arrangements, treats the manufacturer-to-dealer and dealer-to-customer transactions as sales with incentives reducing the sale value, and relies on the exclusion of transfer of property in goods from the definition of service under Section 66D. Operatively, service tax demands based on classifying such incentives as business auxiliary services are unsustainable and were set aside, and the appeals allowed. en-us Tue, 24 Feb 2026 00:00:00 +0530 Fri, 27 Feb 2026 08:36:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787127 Incentives paid by a manufacturer to an authorised dealer for meeting sales targets are trade discounts forming part of the sale consideration and not consideration for a service; accordingly they are not taxable as Business Auxiliary Service. The analysis applies the principal-to-principal character of dealership arrangements, treats the manufacturer-to-dealer and dealer-to-customer transactions as sales with incentives reducing the sale value, and relies on the exclusion of transfer of property in goods from the definition of service under Section 66D. Operatively, service tax demands based on classifying such incentives as business auxiliary services are unsustainable and were set aside, and the appeals allowed. Case-Laws Service Tax Tue, 24 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787127