TaxTMI 
TaxTMI 
2018 (2) TMI 843
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....ant is Government owned Public Sector Undertaking engaged in the business of refining and distribution of petroleum products through a network of depots/installations. The appellant entered into contractual arrangement with M/s.Indraprastha Gas Ltd.(IGL), who were engaged in the manufacture of Compressed Natural Gas (CNG) from natural gas and its further distribution in and around Delhi. IGL supplied CNG to various similarly placed Public Sector Undertakings Oil Companies including the appellant. The contracts envisaged the oil marketing companies in buying CNG in bulk on discount for sale. The appellant entered into one such agreement with IGL for giving facility of selling CNG through their outlets; accounting and selling of the said CNG.....
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.... price fixed by IGL. The appellant is allowed a trade margin, which is termed as "commission" in the agreement. The name "commission" cannot be construed to understand the transaction as commission agent‟s work. The ld. Counsel relied on the decision of the Tribunal in the appellant‟s own case with reference to similar agreement in Bharat Petroleum Corporation Ltd. - 2014- TIOL-1114-CESTAT-MUM. He also relied on the decision, on an identical dispute, in the case of Indian Oil Corporation vide Final Order No.57596- 5757/2017 dated 6.10.2017. In this case, the Tribunal examined on an identical agreement of IGL with IOCL. The demand of service tax under "BAS" was set aside by Tribunal. 4. Ld.AR supported the findings of the lower ....
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.... liability while selling the CNG to appellants. Although the RSP is fixed but it does not mean that the profit margin shall be constituted as commission for rendering the service. On examination, it is found that all the transactions shown by the appellants are done on principal to principal basis. Moreover, the appellants are selling these CNG on payment of VAT/ST to the buyers. There is no commission component that have been received by the appellants from M/s. MGL. FOR e.g., if the appellant is receiving goods from MGL at Rs. 100/- per kg. including VAT but these goods are sold by the appellant to customers on RSP fixed at Rs. 102/- per kg., that does not mean that the appellants are receiving commission of Rs. 2/- from MGL. In fact the ....