𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀 𝗮𝗻𝗱 𝗔𝗱𝘃𝗮𝗻𝗰𝗲 𝗙𝗼𝗿𝗳𝗲𝗶𝘁𝘂𝗿𝗲 📢 The Tribunal ruled: "Service tax demand on incentives based solely on sales and not for promoting a service is unsustainable, and no tax is liable on advance amounts forfeited."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Jubilant Motor Works (South) Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: The appellant faced service tax demands on incentive income, advance forfeiture, and reversal of input tax credit for the period April 2011 to March 2016.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that sales-based incentives and advance forfeiture do not attract service tax. Credit reversal procedural failure isn't grounds for denial. Service tax demand was set aside; appeal allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Jubilant Motor Works (South) Pvt. Ltd. Vs The Commissioner of GST & Central Excise 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗼.42289 OF 2018 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 05 February 2024