https://www.taxtmi.com/caselaws?id=791727 Cashback or reward incentives received on use of a commercial credit card were treated as outside the service tax net because there was no agreement requiring the cardholder to promote the banks' business or perform any other service in return for the incentive. Mere use of the card to make payments did not amount to a taxable declared service, and the alleged promotional activity was not supported by the notice or the record. The incentive was a bank-funded cashback scheme intended to stimulate card usage and expand the bank's own business, so the essential nexus between activity and consideration was absent. The Board's circular likewise recognised that taxability depends on a specific act, forbearance, or tolerance for consideration. en-us Thu, 14 May 2026 00:00:00 +0530 Sat, 16 May 2026 09:09:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791727 Cashback or reward incentives received on use of a commercial credit card were treated as outside the service tax net because there was no agreement requiring the cardholder to promote the banks' business or perform any other service in return for the incentive. Mere use of the card to make payments did not amount to a taxable declared service, and the alleged promotional activity was not supported by the notice or the record. The incentive was a bank-funded cashback scheme intended to stimulate card usage and expand the bank's own business, so the essential nexus between activity and consideration was absent. The Board's circular likewise recognised that taxability depends on a specific act, forbearance, or tolerance for consideration. Case-Laws Service Tax Thu, 14 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791727