2015 (8) TMI 799

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.... Act, 1994 was also imposed. 2. The facts of the case are that the appellant had entered into a contract with M/s. Singh Traders, Rampur, UP. As per the contract, the appellant was to ensure that the movements of lorries/tankers of M/s. Ahuja Goods Carriers (P) Ltd. is smooth and speedy and it should also arrange/collect information of molasses in respect of quantity of molases lifted from various sugar mills and their stock status on regular basis and it provide this information to M/s. Jubilant Organosys Ltd. For the aforesaid services, the appellant received Rs. 9/- per quintal of molasses lifted as supervision and organizing information charges. The appellant also entered into an agreement with M/s. Punjab Chemical Agency, New Delhi (s....

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.... and therefore no service tax was leviable thereon. 4. Ld. Departmental Representative, on the other hand, reiterated the reasonings of the adjudication order She added that the contracts with Punjab Chemical Agency and M/s. Singh Traders for the relevant period were submitted only at the time of adjudication and therefore could have been fabricated as these were not produced during investigation. 5. We have considered the contentions of both sides and have also perused the agreement entered into by the appellant with M/s. Singh Traders and M/s. Punjab Chemical Agency. It is evident from the contract, which the appellant entered with M/s. Singh Traders that the service rendered under that contract was essentially as quoted from the contra....

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....f quantities of sugar mills as per excise gate passes in favour of Jubilant Organosys Ltd, duly verified by their commercial department." A perusal of the activities undertaken by the appellant as per the aforesaid contract thus clearly reveals that it was neither a promotion or marketing or sale of goods belonging to the client, i.e., M/s. Singh Traders nor it was promotion or marketing of the service provided by the client. Indeed, the activity was not captured under any of the limbs of the definition of BAS given under Section 65 (19) ibid during the relevant period. The appellate authority has clearly observed that the contract dated 02.04.2003 (from which the extract has been reproduced above) was only produced before the adjudicating....

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....rials against your order considering various aspects. 4. That you shall stand guarantee for the sales for which the orders have been routed through you. 5. You shall be entitled for commission @ Rs. 400/- per MT on Caustic Soda Lye & @ Rs. 1000/- per MT on Methanol against the deliveries made for which you will book orders & forward the same. 6. You may book the orders in the state of U.P., Punjab, Haryana and Rajasthan. However, the customer is free to place their orders directly to us. In that case, you shall not be entitled for commission on those sales." Here again, the appellate authority has observed that the contract for the year 2003-04 was submitted only on 27.08.2008. As reasoned earlier, in the absence of contract, there will....