2017 (12) TMI 236

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..... respondent. ORDER Per B. Ravichandran The Revenue is in appeal against the order dated 28.09.2010 of Commissioner (Adjudication), Service Tax, New Delhi. 2. The brief facts of the case are that the respondents are engaged in the business of trading in Electronic Recharge Coupons (ERCs) and also in collection of payment of post paid bills for various telecommunication operators from their subs .....

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..... volve any service of promotion or marketing, to be liable under "Business Auxiliary Service". He referred to various clauses of the agreements and after detailed analysis, arrived at such conclusion. The Revenue is aggrieved by this and filed appeal 3. Ld. AR elaborating the grounds of appeal submitted that the transaction between the respondent and the telecom operator is one of principal and th .....

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..... The distributor is only the middleman arranging customers or subscribers for the assessee. The distribution agreement clearly indicate that it is for the distributor to enroll the subscribers with required documentation. It is clear that the respondents are engaged in the service of distributing and promoting services provided by the telecom operators. The Original Authority erred in dropping the .....

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..... nvolved in the present case. He concluded that the respondent was not acting as agent of telecom operators even in cases, where they were receiving "commission" for marketing and promotion of service of such telecom operators. He concluded that allegation that the respondent provided services of marketing the services of telecom operators is not supported by the terms of the various agreements. Th .....

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..... We note that in the present case, the telecom operators have paid service tax on the full MRP of ERC, which was further sold by the respondent. In such situation, the ratio of the decisions mentioned will squarely apply to the dispute in the present appeal also. Accordingly, we find no merit in the appeal filed by the Revenue. We note that the decisions relied upon by the Revenue are not on the di .....

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