TMI Blog2015 (10) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... nd K.B.K. Vasuki, JJ For the Petitioner : Mr. E. Vijay Anand ORDER R. Sudhakar, J Aggrieved by the order of the Tribunal in rejecting the appeal filed by it, the Revenue/appellant is before this Court by filing the present appeal rasing the following substantial questions of law :- 1. Whether in the facts and circumstances of the case, the Appellate Tribunal is right in deciding the case in favour of the assessee that there is only buying and selling of cards, when the fact remains that there is no sale involved and only commission was paid by the BSNL to the franchisees and 2. Whether in the facts and circumstances of the case the Appellate Tribunal is right in deciding the case in favour of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmission paid in the Nilgiris SSA of BSNL to M/s. Bharat Cell for the period from July 2003 to March 2004. It was noticed that the assessee has not made any payment of Service Tax on Business Auxuliary Services. Scrutiny of the records received from BSNL by Head Quarters Preventive Unit revealed that the assessee had received a commission of ₹ 17,65,562/- during the period 7/03 to 3/05 and the service tax payable works out to ₹ 1,67,739/- (STRs. 1,65,330/- and E.Cess-Rs. 2,409/-). Though the assessee hold centralized registration for payment of service tax, it was noticed that they have not paid Service Tax on the Commission received on the prepaid cards as listed by BSNL and had not followed the procedures laid down under the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the distributors in the present case is not as unreasonable as illustrated int he example discussed above. The following aspects need to be noted in this regard. This is not a case where the distributor is doing a service, billing for it, collecting the charges fo rhte service and then BSNL charging for the services to the customers through a separate process. On the contrary this is a case where BSNL sells the cards through the distributor and collects money from customers throught he distributor and then pays to the distributor out of consideration received by them from their customers on whcih consideration service tax is first discharged by BSNL. That is to say the transactions of both the parties are essentially one and payment on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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