2018 (2) TMI 1614

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....n this regard the appellant M/s. Gunaji entered into an agreement and one of the condition is that the manufacturer M/s. Gunaji gives discount to the appellant while supplying the goods for further distribution. The case of the department is that the said discount is nothing but a sales commission which is liable to service tax under the category of Business Auxiliary Service under Section 65 (105) of the Finance Act, 1994. Accordingly a show cause notice was issued which was culminated into an adjudication order whereby the demand of service tax on the said discount treating it as commission was confirmed. The appellant being aggrieved by the Order-in-original filed appeal before the Commissioner (Appeals) who upholding the Order-in-Origin....

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....the Wholesale Distributor shall take possession of the goods from the factory gate and shall transport the same to its godowns at its own expenses." It is observed from the above para that after supply of goods by the manufacturer the ownership of goods is transferred to the wholesale distributor who is the appellant here. The sales invoice raised by the manufacture is scanned below: From the agreement coupled with the above invoice it can be seen that the transaction between the manufacturer M/s. Gunaji and the appellant is clearly of sale. In the invoice the manufacturer has charged 20% VAT the transaction is clearly at arms length hence sale transaction on principle to principle basis. From the invoice, it is also observed that a t....

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....RY AREA, BHANADARA ROAD, NAGPUR - 440008. Date of Removal: 2010 Invoice No. 61 Time of Removal: 145hy M/s. P.M. Thankas & Suris. atwas leapper PL.A./E.C.C. No.: AABFG 5605 LXM 001 Name of Excisable Goods BRANDED CHEWING TOBACCO Chepter sub-head 2403 9910 -28- Authenticated For G.M. Thaokar & Co. PARTNER PARTICULARS AMOUNT Rs. Ps. Description and pcification of Goods 2. Number & Description of Packages 50 Pudies one Puda Rs..... gr. in each Pudi 2.50 SARVOTKRUST NAGPURI JARDA Pudas one Bag = .0 Kgs. Total Bags 155 Pudies 0000 Pudas 00 No. To - 3. Total Quantity of goods Kgs. 160.0 4. Total Wholesale Value: Rs. 156452 (Under Se....