2013 (9) TMI 1049

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....he Appellant. Shri V.K. Agarwal, Additional Commissioner (AR), for the Respondent. ORDER [Order per : S.S. Kang, Vice-President]. - Heard both sides. 2. The appeal is filed by appellant against the impugned order passed by the Commissioner whereby a demand of Service Tax of Rs. 12,93,077/- with interest is confirmed and penalties under Sections 76 and 78 of the Finance Act, 1994 a....

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....not be said that the appellant has undertaken the activity of Del Credere Agent. Hence the demand under Business Auxiliary Service is not sustainable. Appellant relies upon the decision of the Tribunal in Raja Rajeshwary Intl Polymers (P) Ltd v. CCE, Bangalore-III - 2006 (3) S.T.R. 56l = 2005 (180) E.L.T. 448 (Tribunal) where the Tribunal held that Del Credere Agent is not a Clearing and Forwardin....

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....s under the scope of Business Auxiliary Service. The definition of Business Auxiliary Service also covers the services as a commission agent as per the definition of Business Auxiliary Service, commission agent means any person who acts on behalf of another person and causes sale or purchase of goods, provision or receipt of services for a consideration and includes any person who guarantees for c....

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....nal in Raj Rajeshwary (supra) we find that in that case the Revenue wants to charge Service Tax in the category of C & F and the Tribunal held that the demand under this activity is not sustainable. In the present case, the demand is under Business Auxiliary Services which covers the activity on failure of prospective customers as well as guarantee for collection. In view of this, ratio of the rel....