2018 (5) TMI 1060

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....ant Commissioner (AR) for respondent All these appeals are directed against Order-in-Appeal No: IM/CGST A-III/MUM/14-17/17-18 dated 11/09/2017 passed by the Commissioner of Central Tax (Appeals - III), Mumbai. Heard both the sides and perused the records. 2. The issue that falls for consideration in all these appeals is whether the activity of the appellant which is in the form of, busine....

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....9(i) is in relation to the promotion or marketing or sale of the goods produced by the client or provided by the client or belonging to the client. This expression, in our view, would not cover the sale of the goods by a person, which belong to him, as the activity of the promotion or marketing or sale of the goods by a person belonging to him would not constitute service. The assessees in these c....

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....ng certain quantum of goods from Amway during a month cannot be treated as the consideration received for promotion or marketing or sale of the goods produced by or provided by or belonging to the client, more so, as this commission is not linked to the goods sold by the Distributor, but is linked to the goods purchased by the Distributor from Amway during a month and is in the nature of volume di....

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....istributor) would have to be treated as consideration for Business Auxiliary Service of sales promotion provided to Amway. Therefore, service tax would be chargeable on the commission received by a Distributor from Amway on the products purchased by his sales group. However, in the impugned orders Service tax has been demanded on the gross amount of commission and no distinction has been made betw....