TaxTMI 
TaxTMI 
TaxTMI 
2012 (11) TMI 450
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....nder the service tax in the category of Business Auxiliary Service and has been discharging service tax liability since November 2005. Scrutiny of the records of the appellant revealed that the appellant had entered into a Management Agent agreement dated 23/09/2005 with M/s.Titan Industries Ltd. (TANISHQ). As per the agreement, it has been made a Principal to Agent basis where the appellant shall display, stock and sell the jewellery products to customers through the showroom managed and operated by the agent on a stock transfer basis. The appellant agent is required to ensure that the showrooms are best designed, maintained and operated and shall be responsible for the upkeep and maintenance of the showrooms. The appellant agent is also r....
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.... the said Finance Act. The case was adjudicated by the Deputy Commissioner of Central Excise, who vide order-in-original No.119/STC/2007-08 dated 31/03/2008 dropped the duty demand and proceedings on the ground that during the impugned period the appellant was eligible for exemption under Notification No.13/2003-ST dated 20/06/2003. The said order of the Deputy Commissioner was reviewed by the Commissioner, who found that the order was not legal, proper or correct and accordingly, issued a notice dated 03/07/2009 to the appellant under Section 84 (2) of the Finance Act, 194 asking the appellant as to why benefit of Notification No.13/2003-ST should not be denied and why the service tax amount indicated in the notice should not be demanded a....
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....n, the Commission agent means any person who acts on behalf of another person and causes sale or purchase of goods or provision or receipt of services, for a consideration, and includes any person who while acting on behalf of another person- (i) deals with the goods or services or documents of title to such goods or services; or (ii) collects payment of sale price of such goods or services; or (iii) guarantees collection or payment for such goods or services; or (iv) undertakes any activities relating to such sale or purchase of such goods or services . The activity undertaken by the appellant is squarely covered by notification and therefore, they are rightly entitled for the benefit of the exemption and therefore the impugned order i....
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....ipal, can also appoint any number of additional agents, franchisees, dealers, assignees, etc. There is also condition that the agent shall manage and operate or deal in the showroom only the products supplied by the principal company and shall not deal with any other products in the showroom except with the prior written consent of the principal. Even the bills raised for the sale of the products should be in the principal s name. All the expenses in running the showroom such as wages, salary, employee payments, etc. have to be borne by the agent. In consideration for these services rendered, the agent is entitled to receive a management fee based on the turn over achieved by him on a slab basis. From the tenor of the agreement, it is absol....