2018 (4) TMI 957

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.... work as their agent for disposal of scrap and decide the mode of disposal. For such activity they receive commission from the client department. During the period 01.07.2003 to 09.07.2004, the Revenue noticed that for the commission received, no Service Tax was paid. Accordingly, SCN dated 14.02.2005 was issued proposing demand of Service Tax amounting to Rs. 36,51,114/- along with interest and penalty under various Section of the Finance Act , 1994. Both the authorities below confirmed the proposals in the SCN and the present appeal is filed against the impugned order passed by the Commissioner (Appeals). 2. With the above background, we heard S/Shri Bimal Jain and Sanjay Agarwal, ld Counsels for the appellants as well as Shri G.R. Singh....

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....inistry of Defence and has concluded that the activity is in the nature of selling agent and cannot be covered under the definition of Commission Agent. Ld DR further submitted that during the period of dispute, Section 73 of the Act, provided for raising a demand for upto 5 years in cases where the assessee has omitted or failed to disclosure the material facts required for verification of the assessment under Section 71 of the Act, in the case where the assessee has failed to make return under Section 70. Accordingly, he submitted that the demand raised within a period of 5 years is fully justified. 6. We have considered the submissions made by both sides and perused the record. 7. During the disputed period, Notification No.13/2003-ST....

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....s and it squarely helped in promotion or marketing or sale of goods of the clients. It also seems amply clear that the services rendered by M/s MSTCL are not the services of a Commission Agent and by conducting sale by tender, tender-cum-auction and e auction, they earned their client a better price for their goods. Their services were more aptly covered under the description  "servicers in relation to promotion or marketing or sale of goods provided by or belonging to the client", under the category 'Business Auxiliary Services' and correctly liable for service tax under the head "Business Auxiliary Services' . As the assesee does not qualify as a bonafide sale agent of its client as the sale is actually not being caused/effected by t....