No Service Tax Payable On Amount Received By Automobile Dealer From Manufacturer As Trade Discount: Delhi CESTAT

a Service Tax case where the issue revolves around whether trade discounts granted by automobile dealers to customers are liable for service tax. The Central Excise and Service Tax Appellate Tribunal (CESTAT) held that such discounts, which are post-sale, do not fall under the definition of 'consideration' as per the Finance Act, and thus cannot be subjected to service tax. The tribunal emphasized that trade discounts are reductions in the sale price to customers and are not linked to any service provided by the dealer to the manufacturer. Therefore, the discounts do not constitute taxable consideration under the service tax provisions.