2017 (7) TMI 1457

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.... VCL) for the distribution for recharge vouchers, electronic coupons and starter packs of M/s. VCL. The invoices are raised by M/s. VCL to appellants on the starter packs and recharge vouchers with a discount on the MRP. The appellants after outright purchase, sell their recharge vouchers, electronic coupons and earn small margin. That on the entire MRP, service tax has been remitted to the Department by M/s. VCL. The Department was of the opinion that the income earned on resale of recharge vouchers and electronic coupons, starter packs is a discount or commission provided by M/s. VCL and therefore issued show-cause notice demanding service tax on the margin earned by the appellant on such resale. It was alleged that the appellants are pro....

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....nd Service Tax [2013] 30 STR 428 (Trib.-Delhi) which was upheld by the honourable High Court of Allahabad as reported in Commissioner of Central Excise and Service Tax v. Daya Shankar Kailash Chanda [2014] 34 STR J99 (All). That similar view was taken by the honourable High Court of Kerala in the case of Commissioner v. Karakattu Communications [2016] 45 STR J209 (Ker). 3. With regard to Appeal No. ST/132/2011 and ST/41103/2014, the learned counsel pointed out that demand has been raised on the credit notes issued by M/s. VCL to appellants. That these credit notes are alleged to be discounts received by appellant on the sale of starter pack vouchers, etc. He explained that the credit notes were only reimbursement of expenses like Customer ....