TMI Blog2017 (11) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... said bank. All the foreign exchange received by the appellant are to be transmitted without any change to the Bank of Punjab who will pay certain consideration for this service - this activity is nothing but promotion of business of Bank of Punjab and also acting as an extended representative of the bank for a limited purpose and getting commission for the same - demand upheld for normal period. Extended period of limitation - penalties - Held that: - appellants acted in pursuance of an agreement in buying foreign exchange from the customers. The title of the agreement stating the same as franchisee agreement and the nature of business in dealing with foreign exchange might have given a bonafide reason for the appellant regarding their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Finance Act, 1994. The lower Authorities held that the appellants accepted foreign exchange on behalf of Bank of Punjab and transferred the foreign exchange to the said bank. The commission received for such activity is squarely covered by tax entry BAS as the appellants have promoted business of the bank. 2. The learned Counsel for the appellant contested the finding on the ground that they are not agents of Bank of Punjab. The agreement is a franchisee agreement. They cannot act as a partner or agent or party of joint venture in this arrangement. As such, the finding of the lower Authority that they are agents of the bank is not tenable. The demands were also contested on the question of limitation as the issue involved is one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange in the course of their business of running hotel where the customers pay through foreign exchange. The Bank of Punjab s agreement with the appellant clearly stipulates the conditions and the scope of activities of the appellant. We find that a reading of the agreement makes it clear that the appellant is engaged as an extended facility of Bank of Punjab though only for a limited purpose of accepting foreign exchange at the rate specified by the said bank. All the foreign exchange received by the appellant are to be transmitted without any change to the Bank of Punjab who will pay certain consideration for this service. We are of the considered opinion that this activity is nothing but promotion of business of Bank of Punjab and also a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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