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2015 (9) TMI 831 - Commissioner - Service TaxBusiness Auxiliary Services - trading activity or commission agent - concept of multilevel marketing - allegation that the appellant is selling various types of products of M/s. FSL under the concept of multilevel marketing termed as “Right Concept Marketing”, as a distributor through their dedicated network of distributors called her down-liners and received various kind of incentives, commission etc. in a pre-defined manner depending on kit purchases and repurchases by her down-liners. - Held that:- the service provided by the appellant falls within the ambit of Business Auxiliary Service as defined in Section 65(19) of the Act and is liable to Service Tax under Section 68(1) of the Act read with Rule 6 of the Service Tax Rules, 1994. Further, I find from the records that the appellant has also received various kinds of incentives, commission etc. on account of promotion and marketing of their products by her down-liners and there is no evidence on record to establish that sales tax has duly been paid on the full sale value of such incentives and commissions. Thus the, adjudicating authority has rightly held that the activities carried out by the appellants are covered under the category of Business Auxiliary Services and thus are taxable. - Decided against the assessee. Extended period of limitation - Held that:- they neither supplied any data regarding providing of such services to the department, nor they fulfilled statutory obligations and this act of appellants was entirely unwarranted which resulted into gross violation of law governing the issue as well as Revenue loss to the Government exchequer. Therefore, suppression with intent to evade Service Tax is clearly spelt out. - Demand of service tax with penalty confirmed - Decided against the assessee.
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