TMI Blog2012 (9) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arred by limitation as all the facts were in the knowledge of the department. 4. Per contra ld.A.R. for the Revenue has submitted that from the records maintained by M/s.YBL it has come to the notice of the department that the amount paid by M/s.YBL to the applicant were commissions for sales. On the basis of said information, investigation was initiated against the applicant/appellant. The ld.A.R. submitted that from the agreement between M/s.YBL and the applicant, it is clear that even though the transaction claimed to be sale, but two basic ingredients of sale are absent, namely, there were no profit margin for applicant and secondly the entire money collected from retailers or sub-distributors were to be deposited directly to the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors on monthly basis by providing distributor discount (or other re-imbursement expenses). It is further mentioned that the distributors shall submit monthly manifesto and the first party(M/s.YBL) shall re-imburse the amount stated in the manifesto. The parties to the agreement agreed that the monthly discount shall be discharged at the rate fixed under the said clause. Further we have perused clause 11 of the said Agreement which says that the relation between the first party and the second party is on principal to principal basis. However, clause 12 of the said agreement indicates as follows :- "12. That the Second Party has to collect the sale proceeds and to deposit the money to the First Party's Bank account. All sales will be excl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom time to time including that of Hon'ble Andhra Pradesh High Court in the case of Commissioner of Central Excise, Guntur Vs. Sri Chaitanya Educational Committee - 2011 (22) STR 135 (AP) and the attendant circumstances, we direct the applicant 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 and report compliance on 01.11.2012. On compliance the balance amount of Service Tax and penalties imposed are waived and recovery thereof stayed during pendency of the appeal. Failure to deposit the said amount would result in dismissal of the appeal without any further notice. Stay Application disposed of as above. (Operative part of the order was pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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