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2014 (7) TMI 159 - AT - Service TaxBusiness Auxiliary service or not - Buy and sell of Compressed Natural Gas (CNG) - whether the appellant are providing Business Auxiliary Service as per section 65(19) read with section 65(105)(zzb) of the Finance Act, 1994 or not? - Held that:- As per the said provisions, the service provider provides service to his client for marketing or promotion of the goods to third party. In these cases, appellants themselves are buying goods from M/s MGL. Therefore, the question of rendering the service to the client for marketing of the goods does not arise. We further find that MGL is discharging VAT/ST liability while selling the CNG to appellants. Although the RSP is fixed but it does not mean that the profit margin shall be constituted as commission for rendering the service. On examination, it is found that all the transactions shown by the appellants are done on principal to principal basis. Moreover, the appellants are selling these CNG on payment of VAT/ST to the buyers. There is no commission component that have been received by the appellants from M/s MGL. The decision in the case of Bhagyanagar Gas Ltd. (2012 (9) TMI 860 - CESTAT BANGALORE) wherein this Tribunal held that mere mention in the agreement the trade margin as commission on which VAT/ST has been paid would not evidence the fact of rendering service is application in the present case. The contention of the ld. AR that the private parties are paying service tax under the category of Business Auxiliary Service on the same activity, therefore, the appellants are required to pay service tax is not acceptable as in the case of private parties, the invoices on the customers were raised by M/s MGL directly and the private parties are receiving commission and there is no transaction on principal to principal basis. - Decided in favour of assessees.
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