TaxTMI 
TaxTMI 
2019 (7) TMI 1784
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....ty for the period July 2003 to March 2004. 2. Briefly stated, the facts of the case are that the appellant is engaged in the manufacture of ferro / silicone manganese on which central excise duty is being paid. Apart from the said manufacturing business, they also render services to their clients in connection with sale and purchase of goods produced by the clients for which they earn commission. It is the case of the Department that the appellant is liable to pay service tax on the said commission income under the category of "Business Auxiliary Services". Accordingly, SCN dated 26.09.2008 was issued to propose demand of service tax. The Ld. Commissioner after following the due process of law, adjudicated the said SCN confirming demand of....
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....tested the issue on limitation in the absence of fraud or suppression and on the same counts, contested the imposition of penalty. 5. The Ld. Departmental Representative submitted that the exemption has been rightly denied to the appellant inasmuch as the agreements entered by the appellant with the clients nowhere specifically states that the appellant would work as a 'commission agent'. He reiterated the findings made by the Ld. Commissioner that the exemption is available only to the commission agent undertaking sale and purchase of goods on behalf of the client and not for undertaking services for the client. He prayed that the appeal be summarily rejected being devoid of any merit. 6. Heard both sides and perused the appeal records. ....
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....rvices rendered' and that in the agreement, it has not been mentioned that the appellant has been appointed as 'commission agent'. We are of the considered view that the Ld. Commissioner has committed a serious error in denying the exemption. The agreements entered by the appellant, in substance, is for procuring orders on behalf of the clients for which the appellant would be paid commission to be calculated at the rate on sales amount. It is, therefore, not in dispute that the appellant has to cause sale of products on behalf of the client. Mere fact that in the subject agreements, the appellant has not been specifically addressed as 'commission agent' will not dis-entitle the appellant from availing the benefit of exemption provided in ....
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....s a 'commission agent' by virtue of being engaged in the activity of causing sale or purchase for a consideration which is linked to the quantum of sale or purchase, the benefit of this Notification will cover all business auxiliary services rendered by such a 'commission agent'." Further, in the case of Brindco Sales Ltd (Supa), the Tribunal has made the following observations: "...It is evident from the Explanation contained in the said Notification that the Commission Agent means a person who causes sale or purchase of goods, on behalf of another person for a consideration which is based on the quantum of such sale or purchase. It is evident from the provisions of the agreement quoted above that the appellant was causing sale or pur....