TaxTMI 
TaxTMI 
2024 (8) TMI 1406
X X X X Extracts X X X X
X X X X Extracts X X X X
....ead with Section 65(19) of the Finance Act, 1994 and discharging Service Tax on commission earned on account of such activity as well. The activity of Del-Credere Agent in accordance with and subject to the agreement with their principal, namely, M/s. Reliance Industries Ltd. As a Del-Credere Agent, the appellant had to ensure that the payment for the sale made by the M/s. Reliance Industries Ltd was realised by the principal. However, M/s. Reliance Industries Ltd also used to offer discounts in form of Early Payment Incentive, in case, where payment was made before the stipulated commercial credit period for the sales. The appellant being a Del-Credere Agent was entitled to make payment on behalf of the customers and would earn such discou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....op Kumar Mudvel, Learned Superintendent (AR) appearing on behalf of the revenue reiterates the findings of the impugned order. 4. On carefully considered the submission made by both the sides and perusal of record, we find that the identical arrangement is their between Reliance Industries Ltd., and many Del-Credere Agent who was similarly placed as the present appellant. In the following cases the demand raised on the same grounds as in the present case, was set aside in the case of M/s Tradex Polymers P. Ltd-2014 (34) STR 416 (Tri.-Ahmd.) reproduced below:- "3. We find that it is not disputed that the appellants are distributors and they get commission from their principals on which they are discharging Service Tax liabilit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pellants have overlooked a fundamental issue, that is, the ability to provide different kinds of services to different clients. It is nowhere laid down that merely because an assessee provides one set of services to one set of clients; it is precluded from providing any other services to any other clients. Though the appellants are into business of providing advertising service they can also provide different services, for which classification would depend on the nature of services being provided. In the instant case as mentioned in the impugned order and also as stated by the appellants' they get discounts for volume of business or advance payments. The business they provide to the print media, for which they get the incentive/discount, is....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... aside the impugned order and allow the appeal." In a similar case of M/s. Khanna Polymers-2017 (47) STR 82 (Tri.-Ahmd.) the tribunal held as under :- "Present appeal is against Order-in-Appeal No. 193/CE/APPL/NOIDA/2009, dated 29-7-2009 passed by Commissioner of Central Excise & Customs (Appeals), Noida. 2. The brief facts of the case are that the appellants are selling agents for M/s. Reliance Industries Ltd. and M/s. IPCL. They receive commission. They are paying service Tax on the amount of commission received with effect from 9-7-2004. In addition, they were receiving amounts as incentive and early payment incentive. The Department issued a show cause notice dated 21-11-2007 demanding Service Tax of Rs. 7,32,611/- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sh incentive is covered by the "Business Auxiliary Services" and attracts Service Tax. He further contended that it was held in the case of Tradex Polymers Pvt. Ltd. v. Commissioner of Service Tax, Ahmedabad - 2014 (34) S.T.R. 416 (Tri.-Ahmd.) incentives like cash discounts cannot be treated as consideration for providing taxable service. Learned Departmental Representative has reiterated contents of the impugned order. 4. We have considered the rival submissions, we agree with the finding of this Tribunal in the case of Tradex Polymers Pvt. Ltd. and hold that early payment discount in this case are cash discount and received in view of early payments made to the principles and are linked to the number of days by which payment is m....