Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2018 (2) TMI 843

ined view that the considerations received by the appellant from IGL are in the nature of commission for rendering Business Auxiliary Service in terms of Section 65(19) of the Finance Act, 1994. - Held that: - similar set of facts has been a subject matter of decisions of this Tribunal in the case of Indian Oil Corporation Versus CST, Delhi-II [2017 (12) TMI 20 - CESTAT NEW DELHI], where it was held that service tax cannot be demanded under the category of “Business Auxiliary Service” as the gas has been sold by IGL to IOCL on principal to principal basis. - The transaction between IGL and the appellant are on principal to principal basis. The appellant has been prohibited from holding himself as an agent of IGL. The agreement cate .....

X X X X X X X

Full Text of the Document

X X X X X X X

certain considerations, which were claimed as discount, but the Revenue considered the same as a commission for promoting business of IGL. The Revenue entertained view that the considerations received by the appellant from IGL are in the nature of commission for rendering Business Auxiliary Service in terms of Section 65(19) of the Finance Act, 1994. Accordingly, proceedings were initiated against the appellant by way of issue of four show cause notices covering the period 10.09.2004 to 31.03.2012. The cases were adjudicated confirming the service tax liability and also imposing penalties under Section 77 and 78 of the Finance Act, 1994. 3. Ld. Counsel appearing for the appellant submitted that the appellant has purchased CNG from IGL and t .....

X X X X X X X

Full Text of the Document

X X X X X X X

pplied by the IGL continues to be the property of the IGL and there is no sale by the appellant to the retail customers. The sale of CNG is by IGL itself through the appellant. He submitted that the decisions of the Tribunal relied upon by the appellant did not examine the factual matrix of transactions between the appellant and the IGL. 5. We have heard both the sides and examined the case records. 6. We have also examined the terms of the agreement between the IGL and the appellant. At the outset, we note that similar set of facts in respect of appellant‟s own case in Mumbai and for IOCL with IGL has been a subject matter of decisions of this Tribunal. The said decisions relied upon by the appellant are relevant to decide the presen .....

X X X X X X X

Full Text of the Document

X X X X X X X

#8377; 2/- also. It is also a fact that the appellants are not receiving any commission from M/s. MGL. Therefore, it cannot be presumed that appellants are rendering any service to MGL. Moreover, the case law relied upon by the counsel in the case of Bhagyanagar Gas Ltd. (supra) also supports the cases in hand, wherein this Tribunal held that mere mention in the agreement the trade margin as commission on which VAT/ST has been paid would not evidence the fact of rendering service. The contention of the ld. AR that the private parties are paying Service Tax under the category of Business Auxiliary Service on the same activity, therefore, the appellants are required to pay Service Tax is not acceptable as in the case of private parties, the i .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||