TaxTMI 
TaxTMI 
2024 (3) TMI 561
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....ad entered into agreements dated 18.07.2001 with M/s. Savitha Chemicals Ltd. and also with M/s. Castrol Pvt. Ltd. dated 25.09.2001 to promote, market and sell their products in consideration for a promotional fee of Rs.8 per litre and Rs.6 per litre, respectively. The appellant was issued two show-cause notices one by Jamshedpur Commissionerate on 16.10.2006 proposing to demand Service Tax of Rs.67,35,810/- under the category of 'Management Consultants Service' for the period from 2001-2002 to 2004-05 on account of royalty for use of their trade mark by various organisations. The second show-cause notice was issued by the Commissioner of Service Tax, Bangalore on 10.06.2008 referring to the same set of agreements alleging that the services rendered by the appellant fall under taxable category of 'Business Auxiliary Service' proposed to recover Service Tax for the period from 09.07.2004 to 31.03.2006 for Rs.37,28,327/- and also for receiving commission from the overseas party amounting to Rs.32,21,160/- totalling to Rs.69,49,487/- with interest and penalty. The Commissioner, on adjudication, by order dated 31.10.2008 confirmed the demand with interest and penalty. Aggrieved by the s....
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....hence, not sustainable. 4.2 Further, he has submitted that the services rendered by the appellant are in the nature of 'Intellectual Property Service', hence, covered by the judgment of the Tribunal in the case of Tata Motors Ltd. vs. Commissioner of Service Tax, Mumbai-II: 2017 (4) GSTL 109 (Tri.-Mumbai) and Hero Honda Motors Ltd. vs. Commissioner of Service Tax: 2012 (27) STR 409. 4.3 Further, he has submitted that the learned Commissioner has erred in confirming the demand on the commissions received by the appellant in convertible foreign exchange for sale of goods of the overseas buyers in domestic market. It is his contention that the issue of chargeability of Service Tax on commissions received from the overseas entities for sale of goods, is no more res integra covered by the Larger Bench decision of the Tribunal in the case of M/s. Arcelor Mittal Stainless Steel Ltd. vs. CCE, Mumbai: Interim Order No.26/2023 dated 9.6.2023. 5. Per contra, the learned Authorised Representative for the Revenue reiterating the findings of the learned Commissioner has submitted that on a close analysis of the agreements with M/s. Savitha Chemicals Ltd. dated 18.7.2001 and with M/s. Castrol ....
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....on to the said excavators CASTROL shall ensure that the said product is of the same standard as that certified by TELCON. It is understood by the parties that TELCON shall not vouchsafe for the quality of the said product, if the specifications of the said product do not confirm to the said samples so submitted to TELCON for certification. c) CASTROL shall supply the said product to TELCON, for use by TELCON as an initial-fill for the new excavators manufactured by TELCON. For this purpose, if so desired by TELCON, CASTROL will build and maintain bulk storage and handling facilities at TELCON's works at Jamshedpur and / or Dharwad on such terms and conditions as may be agreed upon between the parties whilst finalizing the said arrangements. d) CASTROL will continue to market the said product through its entire distribution network as well as market the said product through the Authorised Customer Support Centers (ACSCs) of TELCON, as a service-fill for the excavators coming for servicing thereat, For the purpose, CASTROL will supply the said product in 205 Litre barrels, 50 litre and 20 Litre HDPE drums. CASTROL will modify the design of the drums to highlight the certifica....
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.... ACSC's and the owners/users of the excavators manufactured by TELCON, after prior approval of such promotional literature and POP material by TELCON d) For large customers of TELCON, CASTROL will draw up a detailed plan of promotion by organizing seminars in association with TELCON for popularising the said product for service-fill e) CASTROL will assist the large customers of TELCON in diagnosing their operational problems through oil analysis and expert advisory service. f) CASTROL will organize training programmes and seminars for TELCON service personnel on hydraulic fluids and trouble-shooting 5) NON-EXCLUSIVITY It is understood that in the arrangement set out herein, there is no 'exclusivity inter se between the parties and TELCON would be free to certify similar products of other parties for use in its excavators and that such certification is recommendatory for the better operation and maintenance of the machine, but not mandatory 6) PAYMENT OF PROMOTIONAL FEE a) In consideration of the testing and certification of the said product by TELCON, for recommending the use of the said product for the excavators manufactured by TELCON, for using the said pro....