https://www.taxtmi.com/caselaws?id=795396 CNG outlet arrangements constitute a principal-agent relationship where the supplier retains ownership, price control, inspection rights and control over unsold stock, while outlet operators provide infrastructure, personnel and sales support. As title and risk in CNG do not pass to the operators, they facilitate sales to vehicle owners on the supplier's behalf rather than purchase CNG for resale. Payments linked to quantities sold, expressly characterised as commission or profit margin, are remuneration for agency services rather than trade discounts. Such promotion, marketing and sale of CNG for the supplier falls within taxable Business Auxiliary Service and the definition of a commission agent, creating service tax liability. en-us Mon, 20 Jul 2026 00:00:00 +0530 Wed, 22 Jul 2026 08:48:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795396 CNG outlet arrangements constitute a principal-agent relationship where the supplier retains ownership, price control, inspection rights and control over unsold stock, while outlet operators provide infrastructure, personnel and sales support. As title and risk in CNG do not pass to the operators, they facilitate sales to vehicle owners on the supplier's behalf rather than purchase CNG for resale. Payments linked to quantities sold, expressly characterised as commission or profit margin, are remuneration for agency services rather than trade discounts. Such promotion, marketing and sale of CNG for the supplier falls within taxable Business Auxiliary Service and the definition of a commission agent, creating service tax liability. Case-Laws Service Tax Mon, 20 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795396