2006 (11) TMI 21

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....)]. - As per the facts on record appellant entered into an agreement with M/s. Cipla for canvassing and marketing of Cipla's products. For the said role, they were being given an amount of Rs. 2.5 Lakhs per month and in addition a commission of 5% for the orders procured by them for Cipla. The dispute in the present appeal relates to the issue as to whether such services provided by the appell....

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.... required to furnish the said order to M/s. Cipla. As such, they can best be held to the commission agent covered by business auxiliary services, which were held liable to tax w.e.f. 1-7-2003. 3.Our attention has been drawn to the clarification given by Board vide its Circular No. 59/8/2003, dated 20-6-2003, Para 2.1.2 differentiates between commission agent and consignment agent. For better ap....

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....f of another person. Thus, the essential difference is that a commission agent sells or purchases on behalf of the principal while consignment agent receives and despatches the goods on behalf of a principal. It is possible that a person may be a consignment agent as well as a commission agent. Such a person would already be covered in the category of Clearing and Forwarding agent and would be lia....

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....along with some percentage amount. In the instant case, as per the terms of the agreement, appellants were hired for canvassing and advancing the sale of the principal's production and also to procure orders for the same. In such a scenario, they had to be held as commission agent rather than consignment agent. The services as commission agent were levied to tax under the category of the busin....