2016 (11) TMI 488

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....d be liable to tax. 2. As per the facts n record the appellant entered into a agreement with M/s. Eastern Medikit Ltd. (M/s. EML), a public limited company, engaged in the manufacture of medical disposable product which they were exporting to various countries including Turkey. The appellant was engaged in the activity of getting orders from various customers in Turkey and on finalization of the sale, was getting the commissioner from the principal. 3. Revenue by entertaining the view that the said activities amount to promoting business of EML and as such falls under the category of  Business Auxiliary Services , initiated the proceedings against them resulting in confirmation of demand by the original Adjudicating Authority and uph....

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.... satisfies the condition no. (ii) & (iii) but in absence of condition no. (i) the appellant is not a commission agent. In addition that I also find that the appellant has been providing incidental or auxiliary support service to M/s. EML by way of  evaluating the prospective customers  which has been squarely covered under clause (d) of definition of  Business Auxiliary Services  as defined during the period 01.07.2003 to 09.09.2004 under section 65 (19) of the Act. Thus in view of the above, I uphold the orders passed by the adjudicating authority and reject the appeal." 6. As seen from the above, the appellate authority is not disputing the fact that the appellant is satisfying condition (ii) and (iii) of the abov....

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....ereafter take place between principal and customer directly and respondent gets a fixed commission only after the sales takes place and payment is realized. They also submit a report about the customer to the principal. They don't hold stock of any product on behalf of the company. From the facts enumerated above, it is clear that the respondent get commission only when the sale materializes and payment is received from the customers. However, if business auxiliary services was the main activity, the Revenues could not have been linked totally to the sale of the product. We agree with the view taken by the commissioner that primarily the respondent is a Commission Agent and other activities are to incidental to commission agency and therefo....