𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗟𝗮𝗯𝗲𝗹𝗲𝗱 𝗮𝘀 𝗗𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻𝘀 𝗶𝗻 𝗘𝘅𝗽𝗼𝗿𝘁 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 📢 The Tribunal held: " Merely labeling deductions as commission in sales invoices does not make them subject to service tax if they function as sales discounts."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗘𝗻𝘁𝗶𝘁𝘆: J B Exports, Oswal Mills India, and Oswal Prints Pvt Ltd, exporters who deducted 10%–12.5% in sale invoices, calling it commission. 𝗜𝘀𝘀𝘂𝗲: Does the commission label in sales invoices constitute taxable commission under service tax?

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that deductions labeled as “commission” in sale invoices were actually sales discounts, not taxable under 'Business Auxiliary Service.' Previous rulings confirmed this interpretation. Since GTA services pertained exclusively to exports, no service tax applied, and the extended demand period was invalid. Appeal allowed, demands dismissed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: J B Exports, Oswal Mills India, Oswal Prints Pvt Ltd vs. C.C.E. & S.T.-Surat 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 10568 of 2014- DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 22 September 2023 📜 This ruling underscores that deductions labeled as commission in export sales transactions are not necessarily subject to service tax if they are, in substance, sales discounts.