TMI Blog2015 (11) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant for collection of sales tax on behalf of the Government would not fall under BAS as defined in Section 65(19) of the Finance Act, 1994, because the appellant did not provide promotion or marketing of service provided by the client, nor did it provides customer care on behalf of the client. It also did not provide any relation to procurement of goods or services which were inputs for the cli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (T) For the Appellant : Shri B L Narsimhan, Adv. For the Respondent : Shri Amresh Jain, DR ORDER Per R K Singh Stay application alongwith appeal has been filed against order-in-original dated 02.09.2013 in terms of which service tax demand of ₹ 1,33,58,700/- covering the period April 2007 to March 2012 was confirmed alongwith interest and penalties on the ground that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales tax on commission basis for Commercial Sales Department would not fall under the category of BAS as collection of sales tax by the State Government cannot be said to be a service rendered by the State Government. 3. Ld. DR on the other hand stated that royalty is not a tax as has been held by Supreme Court in the case of State of West Bengal vs. Kesoram Limited and Others in its judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs for the client or provision of service on behalf of the client. It has been held by the Supreme Court in the case of D. K. Trivedi Sons vs. State of Gujarat - AIR (1986) SC 1323 that royalty is a tax and therefore the above reasoning given in respect of collection of sales tax applies to the component of demand pertaining to commission received for collection of royalty on mines for onward ..... X X X X Extracts X X X X X X X X Extracts X X X X
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