2026 (3) TMI 977

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....was acting as a consignment agent of M/s. Rajesh Exports Ltd. Bangalore (REL) who was a leading importer of gold in India and sold the gold on commission basis. The commission received from them by the appellant was liable to service tax which was not discharged; accordingly, show-cause notice was issued. The Commissioner vide impugned Order-in-Original No.COC-EXCUS-000-COM-86/14-15 dated 17.04.2015 confirmed the demand of service tax of an amount of Rs.82,04,594/- along with interest classifying the same under the category of 'Clearing and Forwarding Agency Services' for the period from October 2007 to September 2012 and also imposed various penalties. Aggrieved by this order, the appellant is in appeal before us. 2. The Learned Counsel....

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.... commission on sales. 3.1. Further it is submitted that since the entire amount along with the applicable interest was paid prior to the issue of the show-cause notice, hence, there was no need for issuance of show-cause notice under Section 73(3) of the Finance Act, 1994. Relied on the following decisions: • CCE Vs. Adecco Flexione Workforce Solutions Ltd. 2012 (26) STR 3 (Kar) • M/s. Sigpack Associates V. CST, Dharwad 2025 (1) TMI 1213 • CST, Bangalore V. Master Kleen 2012 (25) STR 439 (Kar.) • CC, Bangalore Vs. Powerica Ltd. 2012 (276) ELT 302 (Kar.) 3.2. With regard to limitation, it is submitted that the show-cause notice dated 19.04.2013 was issued invoking extended period of l....

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....signment sale. This arrangement shall not be deemed to create any other relationship except as expressly stipulated herein. The Consignment Agent shall be responsible for the safety and security of the property of the Company including stocks, moneys in bank accounts, Intangible furniture, fixtures or any other property in his custody or control. Failure on the part of the Consignment Agent in this regard shall be considered as a breach of trust and violation of the provisions of this contract. ........ 11. The Consignment Agent shall sell the products at prices recommended by the Company from time to time along with statutory levies as may be applicable. The entire proceeds of the sale excluding the statutory levels colle....

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.... the Consignment Agent and the Company shall provide tax deduction at source certificates to the Consignment Agent at regular intervals. Service tax or such other taxes, if applicable, will be extra and paid by the company." 5.2 In view of the above, there is no doubt that the appellant is an 'Consignment Agent' and since Clearing and Forwarding Agent Services includes 'Consignment Agent' the demand of service tax by the Commissioner in the impugned order under category of Clearing and Forwarding Agent Services is justified and hence, upheld. Only after investigation, the Revenue on perusal of certain documents procured during the investigation along with sample copies of consignment notes, debit notes, retail invoices and commission pai....