TaxTMI 
TaxTMI 
2023 (9) TMI 1438
X X X X Extracts X X X X
X X X X Extracts X X X X
....ommerce" is confirmed. 2. The facts of the case are that the appellant is engaged in the manufacture and sale of excisable goods. The appellant entered into an agreement with M/s Tata Steel Limited for manufacturing job as Conversion Agent of Tata Steel Ltd. (TSL). The appellant operated as Conversion Agent of TSL in terms of the Conversion Agency Agreement. The appellant was also appointed as Consignment Agent of TSL for handling the said converted steel material on, inter alia, the terms and conditions set out in the Consignment Agency Agreement. With reference to the said Conversion Agreements, a third Agreement was entered into by and between TCIL and TSL, whereunder TCIL was appointed as Marketing Agent for marketing of TSL's produc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....L, as and by way of input service, in its factory. 2.3 Thereafter, it is evident that the service in question rendered by TCIL during which its Consignment Agent carried out the handling job on which service tax is payable and was paid has nothing to do with any service rendered or to be rendered by TCIL under the Marketing Agency Agreement with TSL. 2.4 The Revenue is of the view that in terms of Marketing Agency Service, the appellant is providing the services under the category of "support of services of business and commerce" and liable to pay service tax thereon. 2.5 Therefore, the proceedings were initiated against the appellant for demanding the same. 2.6 The matter was adjudicated. The demand of service tax was confirmed....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 3.1 To that effect, the facts have been verified by the Department and the Commissioner of Central Excise, Jamshedpur, has confirmed that the appellant has not received any amount towards marketing agency agreement. Therefore, they are not liable to pay service tax at all. 4. Heard both sides and considered the submissions. 5. We find that during the course of hearing of the Stay Petition by this Tribunal, a report was sought from the Commissioner, Jamshedpur to the effect that whether the appellant has received any amount towards marketing and consignment agency services and the said report has been submitted by the ld.Commissioner. For ready reference, the said report is extracted below : 6. It is evident from the records and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ough they are manufacturers in terms of Central Excise Law, the ownership of the goods all along remains with TSL and the "converted" finished products are marketed as TSL's products and priced& sold at TSL's depot prices. The material is transported to TSL's depots/consignment agents and this entire chain of post manufacturing activity of transportation, handling, Document 2 billing etc. is entrusted to TCIL in terms of the Marketing Agency Agreement and Consignment Agent's Agreement. TCIL are, therefore, rendering services to TSL in terms of the Marketing Agency Agreement and Consignment Agency Contract. TCIL pay service tax on the freight paid on transportation of the converted finished products to TSL's d....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has the same been demanded from them, except under BS8 Document 3 category. Moreover, this fact has very clearly been dealt in para- 4.16 of the Order in Original No.29/8.Tax/Commr/2011 dated 24.11.2011. 2. As regards claim of TCIL that Excise duty on Rs.76.90 Crore amount as shown in Annexure-1 of the SCN) has already been paid by including it in assessable value of the goods at the time of clearance of the same and therefore service tax cannot be demanded on it under any category, TCIL'S stand is incorrect. They have suppressed the fact that the amount has actually been re-imbursed to them by M/s Tata Steel Ltd. in terms of Notes- 6 of the Payment Terms contained in the para-11 of the Conversion Agreement dat....