https://www.taxtmi.com/caselaws?id=466960 The note clarifies that incentives paid by a principal to a dealer for meeting sales targets, where contracts and statutory records consistently record principal-to-principal sale of goods and invoices/VAT returns treat the receipts as price adjustments, do not constitute a taxable service under the negative-list regime introduced w.e.f. 01.07.2012; therefore such incentives are to be treated as trade discounts or sale consideration and not within the legal concept of declared/service taxable under the Finance Act, 1994, producing no service tax liability for the period in question and resulting in the setting aside of contested service tax, interest and penalties. en-us Mon, 09 Oct 2023 00:00:00 +0530 Sat, 28 Feb 2026 08:40:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466960 The note clarifies that incentives paid by a principal to a dealer for meeting sales targets, where contracts and statutory records consistently record principal-to-principal sale of goods and invoices/VAT returns treat the receipts as price adjustments, do not constitute a taxable service under the negative-list regime introduced w.e.f. 01.07.2012; therefore such incentives are to be treated as trade discounts or sale consideration and not within the legal concept of declared/service taxable under the Finance Act, 1994, producing no service tax liability for the period in question and resulting in the setting aside of contested service tax, interest and penalties. Case-Laws Central Excise Mon, 09 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466960