2024 (5) TMI 129

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....Chennai provided Dish Antenna and appellant installed the same at customers premises. The appellant also carried out the activity of activating such dish antennas as per the scheme of M/s. Sun Direct TV Pvt Ltd. During the course of audit of accounts of the appellant by the internal audit party, it was noted that the appellant though received commission for the period 2007 - 2008 to 2010 - 2011 from M/s. Sun Direct TV Private Limited, they had not discharged service tax on the commission received by them. Show cause notice was issued for the period 2007-2008 to 2010 - 2011 proposing to demand the service tax under the 'Business Auxiliary Service' along with interest and for imposing penalties. After due process of law, the original authorit....

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....to service tax. 4. It is submitted that the issue is squarely covered by the decision of Kumar's Electronics Vs. Commissioner of Central Excise, Madurai - 2019 (29) GSTL 463 (Tri. Chennai). The Ld. Counsel prayed that the appeal may be allowed. 5. The Ld. AR Shri. Harendra Singh Pal, appeared and argued for the department, and reiterated the findings in impugned order. It is submitted by the Ld. AR that the demand has been confirmed for the reason that the appellant did not adduce evidence that the commission accounted in their ledgers have suffered service tax. The Ld. AR prayed that the appeal may be dismissed. 6. Heard both sides. 7. The issue that arises for consideration is whether the demand of service tax on the commissio....

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....ppellant installs the DTH instruments including cards therein and activates the same for which they receive service charges and pay applicable service tax on such charges. In addition, they also sell recharge coupon vouchers received from DTH operators for which they were paid a certain amount as commission. The recharge coupon vouchers carry a maximum retail price inclusive of all taxes and on such price the DTH operator was already discharging service tax. The department was of the opinion that the commission received by the appellants from the DTH operators towards the sale of recharge coupons is taxable under the head "Business Auxiliary Service". Accordingly, show cause notices were issued and the demands were confirmed by the lower au....

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....service tax has been paid on the M.R.P. by the main operator the commission agent/distributor need not pay service tax on the commission received by him because commission also forms part of the M.R.P. on which service tax has already been discharged. 8. Respectfully following the ratio of the aforesaid decisions of the Principal Bench of the Tribunal, Hon'ble High Court of Allahabad and Hon'ble High Court of Madras, we find that the impugned orders need to be set aside and the appeals need to be allowed and we do so. Appeals are allowed and the impugned orders are set aside with consequential benefits, if any. 10. The facts in the case are identical to the facts in the case of Kumar's Electronics as above. The facts being ident....