TMI Blog2012 (11) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided by the agent. There is also condition that the agent shall manage and operate or deal in the showroom only the products supplied by the principal company and shall not deal with any other products in the showroom except with the prior written consent of the principal. Even the bills raised for the sale of the products should be in the principal's name. In consideration for services rendered, the agent is entitled to receive a management fee based on the turn over achieved by him on a slab basis Thus from the tenor of the agreement, it is absolutely clear that the appellant is not a mere commission agent as envisaged in the Notification No.13/2003. The appellant is not merely acting as a Commission Agent but does something much mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and operated and shall be responsible for the upkeep and maintenance of the showrooms. The appellant agent is also required to insure the premises, furniture and fittings and allied services to the satisfaction of the principal. The agent is further required to stock, display and sell the products in the showroom in the name of Titan Industries Ltd. and the cash memos issued for sale shall also carry the name of Titan Industries Ltd. The money collected as receipt of sale have to be deposited in the designated bank account of the principal on the same day or on the following day of sale and any failure to do so will attract 24% interest per annum. Upon the services rendered, the appellant receives a consideration in the form of management f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of Notification No.13/2003-ST should not be denied and why the service tax amount indicated in the notice should not be demanded along with interest thereon and why penalty should not be imposed on them. The case was adjudicated vide the impugned order and the Ld. Commissioner held that the appellant is not eligible for benefit of Notification No.13/2003 and confirmed the service tax of ₹ 2,93,023/- along with interest thereon and also imposed penalties under Section 76, 77 78 of the Finance Act, 1994. Hence, the appellant is before me. 3. The Ld. Counsel for the appellant submits that against the order of the Deputy Commissioner dated 31/03/2008 the department had preferred an appeal before the Commissioner (Appeals) vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is squarely covered by notification and therefore, they are rightly entitled for the benefit of the exemption and therefore the impugned order is bad in law. He also relies on their decision of the Tribunal in the case of CCE, Ahmedabad Vs. Somani Exports, 2009 (13) STR 562, in support of the above contention and also on the decision of the Tribunal in the case of Premier Enterprises Vs. CCE, Hyderabad, 2009 (16) STR (158) (Tri-Bang), CCE, Allahabad Vs. Chandan Chemicals, 2007 (7) STR 578 (Tri-Del). 4. The Addl. Commissioner (AR) appearing for the Revenue on the other hand strongly opposes the contention of the appellant. He further submits that the activity undertaken by the appellant in the instant case is not that of a mere Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered, the agent is entitled to receive a management fee based on the turn over achieved by him on a slab basis. From the tenor of the agreement, it is absolutely clear that the appellant is not a mere commission agent as envisaged in the Notification No.13/2003. As per the definition of Commission agent given in the explanation to the notification, Commission agent means a person who causes sale or purchase of goods on behalf of another person for a consideration which is based on quantum of sale and purchase of goods . The case laws relied upon by the appellant in the case of Premier Enterprises, Chandan Chemicals and Somani Exports cited supra are distinguishable on facts. In those cases there was no condition relating to operation and ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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