TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 684
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....s of purchasing the business kit become distributor of the appellant after filling and submitting the distributor application form. The appellant issues a receipt to the distributors towards purchase of business kits who can, if satisfied, introduce two persons who purchase business kits and in turn also become a distributor. The business kits primarily contains only the suit length and distributor forms will get discount from the given price of the suit length. If a person after becoming a distributor sells the suit length to persons, he will also get some commission from the appellant. The appellant introduced two types of business kits containing the following goods and distributorship application : i) Soaps, brochure and two blank dis....
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....the sales of suit lengths, the appellant has been discharging the VAT liability. The learned Advocate for the appellant has taken us through various VAT returns filed for the relevant period that shows that Sales Tax/VAT has been paid by it on the sale of suit lengths in the form of business kits. It has also been contended that the appellant is not rendering any business support service to its distributors and the appellant is primarily engaged in the business of trading of suit lengths by employing innovative ways of selling the suit lengths. Further, elaborating the sales pattern, it is contended by the appellant that it is running its own business and the distributors are promoting the business of the appellant by introducing new person....
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....ent has grossly erred in confirming the service tax demand on the entire amount which also included the value of the goods traded by the appellant. It has further been urged that on the value of input service, such as, insurance, the service tax liability has been discharged by the appellant. It has also been stated that the appellant has discharged his income tax liability showing the activity as the multi-level marketing of the goods and they are in the trading of goods and not providing any "Business Support Service". 6. We have also heard learned Departmental Representative who has supported the findings recorded in the order-in-original. 7. After having heard both the sides and after perusal of the records of the appeal, it is clear ....
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....nship management services, accounting and processing of transactions, operational assistance or administrative in any manner, formulation of customer service and pricing policies, infrastructural support services and other transaction processing, Section 65 (104c). Explanation For the purpose of this clause, the expression "Infrastructural Support Services" includes providing office along with office utilities, reception with competent personnel to handle meetings, secretarial services, internet and telecom facilities, pantry and security. 9. There have been amendments in the definition of the Business Support Service as provided under Section 65 (105) (zzzq) of the Act over the years since its enactment w.e.f. 1 May 2006. The Departme....
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....conomical or otherwise worthwhile to outsource. 5.2 The words "operational and administrative assistance" have wide connotation and can include certain services already taxed under any other head of more specific description. The correct classification will continue to be governed by Section 65A". 11. From a perusal of the above clarifications, it can easily be inferred that the Business Support Service includes the activities which support the main business activity like service of providing infrastructure for running an office or a business and like activities. In the present case the appellant has adopted a marketing strategy for sale of its product and has not solicited or provided any Business Support Service to the distributors. I....