TMI Blog2013 (8) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... are satisfied that RCM (Right Concept Marketing) Business Marketing Plan is neither a new arrangement nor there is any concept of dividends as suggested by the Ld. Counsel. This is a clear Multilevel Marketing Service Scheme. The consideration/commission received by the appellants from FSL (this fact is not disputed) is the result of the marketing/promotion of FSL products by the appellants and constitutes a service (Business Auxiliary Service), provided in respect of FSL products to FSL. The commission/consideration is provided according to the terms and conditions, for marketing/promotion efforts by the appellants. The receipt of commission by the appellants clearly makes them providers of Business Auxiliary Service as defined under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration the petitioners objections to the Show Cause Notice and providing a personal hearing, the adjudicating authority confirmed the demand of ₹ 45,579/-, along with interest under Section 75 and penalty under Section 77. The specified penalty under Section 78 was also imposed besides penalty under section 76 of the Act. 2. Aggrieved, the assessee preferred an appeal which was rejected by the Commissioner Central Excise (Appeals) Jaipur- ii vide order dated 29.03.2011. The appellate authority concurred that the appellant had provided the taxable Business Auxiliary Service ; had deliberately failed to obtain registration; had failed to file returns; nor had remitted service tax on the commission received from M/s Fashion Suiting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct as per terms of conditions specified in the RCM Business Marketing Plan of the company. Particulars of the RCM Business Marketing Plan have been set out in the adjudication order. As per this plan a distributor gets commission on the supply made by FSL and also a share in the commission for introducing new customers, after such distributor propagates/promotes FSL products under share your views with your friends and relatives concept. Thereafter, when a new customer starts using FSL products they in turn will propagate/promote FSL products to other persons and the distributor gets commission in respect of purchases made by such introducees, down the line. He shares the commission with others on such purchases. Consequently FSL sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew arrangement nor there is any concept of dividends as suggested by the Ld. Counsel. This is a clear Multilevel Marketing Service Scheme. The consideration/commission received by the appellants from FSL (this fact is not disputed) is the result of the marketing/promotion of FSL products by the appellants and constitutes a service (Business Auxiliary Service), provided in respect of FSL products to FSL. The commission/consideration is provided according to the terms and conditions, for marketing/promotion efforts by the appellants. The receipt of commission by the appellants clearly makes them providers of Business Auxiliary Service as defined under Section 65 (19) of the Act. The appellate and adjudication orders are impeccable on this a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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