“Aadat” Margin Doesn’t Qualify as Commission for any service: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that the "Aadat margin" does not qualify as a commission under any service provision, dismissing the appeal of the Revenue Department. The case centered around whether the margin earned by traders during transactions could be treated as a commission for service tax purposes. CESTAT clarified that "Aadat margin" is merely a trader’s profit margin, not a service commission, and thus not taxable under service tax laws. This decision underscores the importance of distinguishing between trading margins and service commissions in taxation.