https://www.taxtmi.com/caselaws?id=789143 Trade discount reimbursements and target-linked incentives received by an authorised car dealer from the manufacturer were held not to constitute consideration for a taxable service under the Finance Act, 1994, because the dealer operated on a principal-to-principal basis and no distinct service to the manufacturer was shown. Reimbursements of customer discounts merely reduced the purchase price, while sales-linked incentives were commercial trade discounts tied to performance, not a service activity or declared service. As the underlying service tax demand was unsustainable, the related tax, interest, and penalties also failed. The penalty imposed on the Accounts Manager was likewise set aside because it was wholly dependent on the main demand. en-us Mon, 02 Mar 2026 00:00:00 +0530 Sat, 04 Apr 2026 08:53:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789143 Trade discount reimbursements and target-linked incentives received by an authorised car dealer from the manufacturer were held not to constitute consideration for a taxable service under the Finance Act, 1994, because the dealer operated on a principal-to-principal basis and no distinct service to the manufacturer was shown. Reimbursements of customer discounts merely reduced the purchase price, while sales-linked incentives were commercial trade discounts tied to performance, not a service activity or declared service. As the underlying service tax demand was unsustainable, the related tax, interest, and penalties also failed. The penalty imposed on the Accounts Manager was likewise set aside because it was wholly dependent on the main demand. Case-Laws Service Tax Mon, 02 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789143