Respondent is engaged in the manufacture of sugar and molasses and procured sugarcane through various societies formed at district level which controlled the sale of sugarcane by the farmers to the respondent - The said societies also made certain payments to the respondent which the Revenue has treated as consideration for Marketing Support services
Hon'ble CESTAT ALL held that -
"Under Business Auxiliary Service, commission is treated as consideration when such commission is received for promotion or marketing of sale of goods or for providing service or for providing Customer Care Service or for arranging procurement of goods for the clients - Appellant in this case is not engaged in promotion of any sale of goods on behalf of anybody else, nor any service, nor any activity being undertaken on behalf of the clients. Clear meaning of the transaction is that when sugarcane is purchased by the appellant, some amount is received back from the seller of the sugarcane. It clearly means that it is a type of discount. The appellant had not provided any marketing support services"
In the case of K S Chini Mills
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