The bench was allowed to file a consolidated reply on 10% deposit of the disputed tax amount in cash from the Electronic Cash Register within 30 days from receipt of the order.

The Tribunal set aside the service tax demand against the Amway distributor, noting the SCN lacked clarity and held that distributors resell goods on their own account not service providers.

Since no specific penalty is prescribed elsewhere, Section 450 of the Companies Act, 2013 applies, which provides for a penalty of ₹10,000, and in case of continuing contravention, ₹1,000 per day, subject to a maximum of ₹2 lakh for a company and ₹50,000 for an officer in default.