Custom, Excise & Service Tax Tribunal
Cce, Chandigarh vs M/S Facinate Advertising & Marketing on 18 January, 2012
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Block No.2, R. K. Puram, New Delhi. Date of hearing/decision 18.01.2012 Service Tax Appeal No. 408 of 2008 (Arising out of order in appeal No. 129/CE/CHD/2008 dt. 12.2.2008 passed by the Commissioner (Appeals-I) Central Excise, Chandigarh). CCE, Chandigarh Appellant Rep. by Sh. B.L. Soni, DR for the appellants. Vs. M/s Facinate Advertising & Marketing Respondent
Rep. by Sh. V.R. Sethi, Advocate for the respondent.
Coram: Honble Sh. D. N. Panda, Judicial Member Honble Sh. Rakesh Kumar, Technical Member ORDER No._____________ Per: Shri D. N. Panda:
Learned DR submits that ld. Commissioner (Appeals) committed an error of law holding that incentives received by an advertising agency services is not taxable. Similarly, he is wrong to hold that the bad debt and cash discount are not taxable. He also submits that when the Chartered Accountant certificate on discount aspect was produced, that was not found to be correct.
2. Ld. Counsel for the respondent supports the appellate order.
3. Heard both sides and perused the record.
4. Incentive is a receipt for appreciation of performance of services provided. How such forms part of taxable service remained unexplained. We are unable to find how the revenue shall succeed saying that incentive shall be brought to tax when such incentive whether shall be payable was not known to the respondent while providing service. Therefore, the dispute on that count is resolved against the revenue.
5. So far as the bed debt is concerned, that was not a consideration received and non receipt of consideration when becomes bed debt, by its nature that do not enter into tax ambit. Therefore, that shall not be taxed.
6. In so far as cash discount is concerned, no logic is shown to us as to how there was understatement of consideration when the discount amount was not received towards consideration. We reiterate that the discount not being received does not enter into realm of consideration received. Consequently, that shall also not be liable to tax.
7. In the result, revenues appeal is dismissed.
(Dictated and pronounced in the open Court) (D.N. Panda) Judicial Member (Rakesh Kumar) Technical Member Pant 1