2023 (4) TMI 505

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....the case are that the appellant is a Public Sector Undertaking and was engaged in trading activity. The appellant entered into an agreement with M/s Neelachal Ispat Nigam Limited (NINL) for marketing and sale of the products of NINL during the material period. It was provided in the agreement that the property and risk in the goods shall continue to vest in NINL, even if the same are in possession of the appellant. The appellant was to be paid 3% commission of the sale value of the product sold in India for the services rendered by the appellant. The appellant was under the impression that the activity of the appellant along with NINL was sale and purchase of the goods on principal to principal basis for which the appellant was registered w....

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....he category of "Business Auxiliary Service". The payments made by the appellant were appropriated and the balance payment of Rs.62,11,908/- was confirmed against the appellant and penalty of Rs.2,89,11,609/- was imposed. Against the said order, the appellant is before us. 3. The ld. Sr. Counsel for the appellant submitted that the appellant was not covered under Clause (i) of Section 65 (19) of the Finance Act, 1994 as the appellant was not engaged under any activity of promotion or marketing or sale of goods produced or provided by or belonging to the client. The said activity was squarely covered by the exemption Notification No.13/2003-ST dated 20.06.2003 wherein the Commission Agent has been defined, which means "a person who causes ....