Commission relatable to services was outside the then-definition of commission agent, so service tax did not apply for that period.

Overriding commission received by a general sales agent during 2004-05 was held outside Business Auxiliary Service because the then-applicable definition of "commission agent" under Notification No. 13/2003-S.T. covered only persons causing sale or purchase of goods on behalf of another for consideration linked to such sale or purchase. Commission relatable to services was brought within the definition only by the later amendment effective from 16-5-2005. As the commission arose from Air Travel Agent service during the relevant period, service tax was not leviable and the demand was unsustainable.

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Issues: Whether overriding commission received by a general sales agent during 2004-05 was taxable as Business Auxiliary Service.

Analysis: The relevant definition of commission agent under Notification No. 13/2003-S.T. was applicable during the period in question and covered only a person causing sale or purchase of goods on behalf of another for consideration linked to such sale or purchase. Commission relatable to service was outside that definition until the later amendment taking effect from 16-5-2005. Since the demand arose from overriding commission received in the course of Air Travel Agent service during 2004-05, the levy was not attracted for the relevant period.

Conclusion: The commission received by the appellant was not taxable for the relevant period and the demand was unsustainable.

Ratio Decidendi: Where the governing definition of commission agent during the relevant period does not cover commission relatable to services, service tax cannot be levied on such commission for that period.

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