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2012 (9) TMI 491 - AT - Service TaxCommission agent - service tax demand and equivalent amount of penalty imposed u/s 78 - Held that:- Considering the agreement entered between company and applicant it is concluded the applicant was appointed as a sole distributor for marketing the products in the state of Sikkim on behalf of them. From a conjoint reading of clause 11 and 12 along with clause 7 of the said agreement, prima facie, it would be difficult to appreciate that the relations between M/s.YBL and the applicant are that of a seller and purchaser as if the beer is sold at a price to the applicant and the applicant ultimately sales to retailers, then in that event, the applicant is eligible to a discount on the invoice itself or on some conditions subsequent to the event of sale. Besides, clause 12 indicates that the applicant is required to collect the sale proceeds from the retail sale of the goods and to deposit the same to company's Bank account Scrutinizing the balance sheet and ledger maintained by company wherein the amount had been paid to applicant was shown as commissions on sales and sales promotion expenses, a fact not controverted by the applicant. In these circumstances, the applicant could not able to make out a prima facie case for waiver of entire amount of duty and penalty - assessee not pleading on financial hardship direction to deposit 25% of the Service Tax involved in this case within a period of 8(eight) weeks from the date of communication of this order.
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