2020 (5) TMI 523

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....stributors of M/s Amway India Enterprises and are not discharging the service liability on the consideration paid to them by M/s Amway. Consequently, show cause notice was issued to them for recovery of the service tax not paid during the relevant period with interest and penalty. On adjudication, the demand was confirmed alongwith interest and penalty. Aggrieved by the said order, they filed an appeal before the Ld. Commissioner (Appeals), who inturn, rejected their appeal. Hence, the present appeal. 3. The Ld. AR for the Revenue brought to our notice that the issue relating to liability of service tax on the distributors in multi level marketing system has been settled by this Tribunal in the case of Surendra Singh Rathore vs. Commission....

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.... account. Company is obligated to remit consideration to the distributor for selling the company's product as per terms of conditions specified in the "RCM Business Marketing Plan" of the company. Particulars of the RCM Business Marketing Plan have been set out in the adjudication order. As per this plan a distributor gets commission on the supply made by FSL and also a share in the commission for introducing new customers, after such distributor propagates/promotes FSL products under "share your views with your friends and relatives concept." Thereafter, when a new customer starts using FSL products they in turn will propagate/promote FSL products to other persons and the distributor gets commission in respect of purchases made by such int....