TMI Blog2007 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... n come received were mentioned in the Balance Sheet as - (1) Consultancy income Rs. 45 lakhs (2) Income from services rendered Rs. 1.42 crores 2. These were Balance Sheets for 1998-99, 1999-2000. During the Adjudication proceedings, the appellant stated that income was not received from services rendered to M/s. Innovative Textiles Pvt. Ltd., New Delhi in regard to certain exports of Textiles. It was the contention of the appellant that this was an agreement for collaboration in the export of fabrics and that there was no consultancy involved in both. The contention of the appellant was rejected and tax demand made. The appellant took up the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r company and all expenditure incurred on correspondence, travel, communications and couriers etc. will be borne by your company. 3. Our company will be responsible for selling of material in overseas markets and will undertake following jobs: (a) All arrangements for selling of material in overseas markets and for opening of L/Cs for export of material by mills. (b) Liaison with transporters at Boarder for export of material of mills. (c) Arrangement of acceptance advises and payment advises for documents of mills. (d) Maintaining relations with overseas buyers for better sales. (e) Collection of export commission from mills. Along with above jobs all matters related to selling of material and collection of commission from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party (the appellant) and Para 3 lays down the responsibility of the other party. It is clear that the appellant's responsibility are in the areas of handling matters related to sourcing of material for export from all the mills in India. Sub-clause (a) to (e) of Para 2 mentions In detail the components of that service. Para 4 of the agreement stipulates that the commission received from mills by M/s. Innovative Textiles (P) Ltd. will be shared. It states that the present appellant shall receive 60% of the commission for the role played by it. 7.1 A reading of the clauses of the agreement makes it clear that none of this collaboration agreement contain any of the elements of management consultancy. They do not relate to management of an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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