2017 (12) TMI 1381

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....ies in connection with receipt, storage, sale and sale promotion of the goods manufactured and sold by their principal. The dispute in the present case relates to tax liability of the appellant for these activities under the category of Business Auxiliary Service as defined under Section 65(19) read with Section 65(105)(zza) of the Finance Act, 1994. On verification of the record, the Revenue held a view that the appellants are covered by the said tax entry and are liable to pay tax on the whole of the amount received from M/s United Breweries Ltd. for discharging these functions. The lower authorities confirmed the liability of the appellant for service tax and also imposed penalties. 3. The ld. Counsel appearing for the appellant submi....

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....s as above. 5. The ld. AR contested the appeal on both the grounds. On the first issue, he submitted that the appellant is not a mere commission agent. He is actually appointed as a del credere agent as referred to in various clauses of the agreement. The ld. AR strongly contested the claim of the appellant that they will be covered by the Notification No. 13/2003-ST. The said notification exempts only the services rendered by the commission agent and not by a del credere agent. The scope of work and responsibility del credere agent are entirely different. 6. On the second issue, it is the submission of the ld. AR that the appellants have split up the various amounts received from the principal and accounted separately. Such a type of....

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....aid to the appellant is linked with the sales quantum. The same is pre-determined as per the agreement. As such, applying the ratio of the above mentioned Tribunal's decision, we hold that the appellants are eligible for exemption as commission agent under Notification No. 13/2003-ST. In this connection, we also refer to the decision of the Tribunal in appellant's own case - 2015 (40) STR 986 (Tri.-Del.). In the said case also, the Tribunal examined the applicability of Notification No. 13/2003-ST and held in favour of the appellant. 9. On the second issue, we note that the appellants did incur various expenditures which they claim are reimbursable in nature. We have gone through the terms of the agreement and also certain illustrative d....