TMI Blog2015 (8) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... it is considered the nature of service rendered by the appellant does not fall under BAS. So any which way, the impugned demand component pertaining to the activity done by the appellant for M/s. Singh Traders is not sustainable. In the absence of contract, there will be no basis for the primary adjudicating authority or the Commissioner (Appeals) to even ascertain as to what was the nature of service rendered in which case as reasoned in the preceding para (para - 5) the demand pertaining to the service rendered to M/s. Punjab Chemical Agency would not be sustainable. - appellant was essentially working as a commission agent and as per Notification No.13/2003-ST, dated 20.06.2003, BAS provided by a commission agent was exempted from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emicals) in terms of which the appellant was authorised to book orders on behalf of the agent for the product (caustic soda Lye) of M/s. Gujarat Alkalies Chemicals Ltd. Vadodra and product (methanol) of M/s. Gujarat Narmada Valley Fertilizer Co. Ltd., Bharuch. As per the agreement, on the orders booked by the appellant, the agent shall supply material to the party and raise invoices directly on the party - For procurement of such orders, the appellant received commission at the rate of ₹ 400/- PMT on caustic soda lye and ₹ 1,000/- PMT on methanol. The primary adjudicating authority held that the services rendered by the appellant fell under Business Auxiliary Service [Section 65 (19) of the Finance Act, 1994] and therefore co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced below (the word you refer to the appellant):- 2. That you will ensure timely loading of quality of molasses from sugar mills from where purchases are finalized from time to time M/s. Jubilant Organosys Ltd., Gajraula. 3. That you will ensure that lorry tanker movement from sugar mill is smooth and speedy as well as they are not detained unnecessarily at the sugar mills. 4. That you will strictly adhere to the programme of loading/lifting given by the company time to time and will coordinate with the transporters authorised for deployment of lorry tankers for the lifting of molasses. 5. That you will ensure that no quantity of molasses purchase ordered is remained uniifted for any reason whatsoever unless you are given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating authority and not at the time of investigation and therefore it appears to be fabricated and cannot be relied upon at this stage. If that be so and the said contract is not relied upon, then the Commissioner (Appeals) or the Original Adjudicating Authority did not have any documentation or evidence to ascertain as to what service was rendered by the appellant to M/s. Singh Traders and therefore the question of classification thereof would be preposterous. Thus, if the agreement is not considered, then there is no evidence of the nature of service rendered by the appellant and if it is considered the nature of service rendered by the appellant does not fall under BAS. So any which way, the impugned demand component pertaining to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of contract, there will be no basis for the primary adjudicating authority or the Commissioner (Appeals) to even ascertain as to what was the nature of service rendered in which case as reasoned in the preceding para (para - 5) the demand pertaining to the service rendered to M/s. Punjab Chemical Agency would not be sustainable. On the other hand, the said contract leaves no doubt that the appellant was essentially working as a commission agent and as per Notification No.13/2003-ST, dated 20.06.2003, BAS provided by a commission agent was exempted from the levy of service tax. As per the said Notification, commission agent means the person who caused sale or purchase of goods on behalf of another person for a consideration which i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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