TMI Blog2006 (11) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... Order No. A/1313/2006-WZB/C-II/(C.S.T.B.), - Dated:- 22-11-2006 - [Order per : Archana Wadhwa, Member (J)]. - As per the facts on record appellant entered into an agreement with M/s. Cipla for canvassing and marketing of Cipla's products. For the said role, they were being given an amount of Rs. 2.5 Lakhs per month and in addition a commission of 5% for the orders procured by them for Cipla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be held to be consignment agent. Even if the order are procured in terms of the agreement, they are required to furnish the said order to M/s. Cipla. As such, they can best be held to the commission agent covered by business auxiliary services, which were held liable to tax w.e.f. 1-7-2003. 3.Our attention has been drawn to the clarification given by Board vide its Circular No. 59/8/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the directions of the principal, whereas a commission agent's job is to cause sale/purchase on behalf of another person. Thus, the essential difference is that a commission agent sells or purchases on behalf of the principal while consignment agent receives and despatches the goods on behalf of a principal. It is possible that a person may be a consignment agent as well as a commission agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission agent is only concerned with the procurement of orders for which he may receive the fixed amount along with some percentage amount. In the instant case, as per the terms of the agreement, appellants were hired for canvassing and advancing the sale of the principal's production and also to procure orders for the same. In such a scenario, they had to be held as commission agent rather ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders for the principal by an agent on payment of commission basis would not amount to providing services as 'clearing and forwarding agent' within the meaning of the definition of the expression under Section 65(25) of the Finance Act, 1994. Inasmuch as the issue stands decided by the Larger Bench decision of the tribunal, we set aside the impugned order and allow the appeal with consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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