𝗖𝗲𝘀𝘁𝗮𝘁 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗿𝗮𝗱𝗲 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Incentives received by the appellant in the form of a trade discount are not subject to service tax. Appeal allowed."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s Veer Prabhu Marketing Ltd. 𝗜𝘀𝘀𝘂𝗲: The Tribunal ruled that incentives received by the appellant from Tata Motors for meeting sales targets are not subject to service tax, and the penalty for false declaration was not sustained.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that additional incentives received as trade discounts were not subject to service tax. It also found warranty services between 01.04.2012 and 30.06.2012 non-taxable, but taxable post-01.07.2012. The case was remanded for verification, and the appellant was granted immunity under VCES, with the penalty lifted.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Veer Prabhu Marketing Ltd. vs. Commissioner of Central Excise – Jodhpur 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 06 February 2023 📜 This ruling clarifies that trade discounts and incentives received by dealers to boost sales are not subject to service tax.