Service Tax not leviable on Incentives for achieving Sales Targets

Audi Motors Pvt Ltd Vs Commissioner CGST (CESTAT Delhi) The sole issue that arises for consideration in this appeal is as to whether the incentives for achieving the sales target can be considered as commission for providing ‘business auxiliary service‘ and, therefore, subjected to levy of service tax. It has been held that the incentive received by the appellant for achieving certain sales target for a month or for a season is in the form of a trade discount and same cannot be considered as a service under the category of the business auxiliary service for the levy of service tax....