TMI Blog2014 (9) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the appellant which is a non-profit organization. Held that:- Nevertheless the transaction undertaken by the appellant is one of purchase and sale of goods; in other words it is simple trading. Therefore, the trade margin obtained by the appellant is not in the nature of a commission. Therefore, we are of the view that the activity undertaken by the appellant cannot be classified as business support services attracting levy of service tax. However, as contended by the appellant that they were not able to produce before the adjudicating authority, the documentary evidences (purchase and sales invoices) in support of their claim that the activity undertaken was trading. Therefore, the matter has to go back to the adjudicating authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the village industrial units. In turn the appellant raises the bills on the PSUs and collects the sale proceeds of the goods supplied. The village industrial units, sometimes, give discount or trade margins of around 3% to the KVIC. The department was of the view that the activity undertaken by the appellant comes within the category of support service of business or commerce' and therefore, on the trade margins collected by the appellant, service tax would be leviable. Accordingly, a show-cause notice dated 22/08/2012 was issued to the appellant demanding a service tax of ₹ 59,97,592/- which has been confirmed vide the impugned order. 2.1 It is submitted by the Consultant that the appellant is not undertaking any business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant should be put to terms. 4. We have carefully considered the submissions made by both the sides. 4.1 Since the issue lies in a narrow compass, we are of the view that the appeal itself can be disposed of at this stage; therefore, after waiving the requirements of pre-deposit and with the consent of both the sides, we take up the appeal itself for consideration and disposal. 4.2 The appellant, M/s. Khadi Village Industries Commission (KVIC) is a body established by an Act of Parliament, under the Ministry of Micro, Small and Medium Enterprises and the objective is to promote and develop khadi and other village industries in the rural areas. To achieve this objective, the appellant purchases Khadi and other village industry pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
