Car Dealer Incentives Are Trade Discounts, Not Taxable Commission, on Principal-to-Principal Sales: CESTAT Kolkata

S.M. Autokraft Pvt. Ltd Vs Commissioner of CGST & Central Excise (CESTAT Kolkata) Summary: The appeals were filed against orders confirming Service Tax demands, interest, and penalties for two periods: February 2012 to March 2014 and 2014–15 to 2015–16. The demands were raised on the allegation that the appellant, an automobile dealer, had received “commission” from the manufacturer and failed to pay Service Tax under the category of Business Auxiliary Service. Both show cause notices (SCNs) invoked the extended period of limitation. The appellant operated as an authorised dealer f...