TMI Blog2018 (5) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... ay on the volume of purchase made by the distributors sponsored /enrolled by a particular distributor i.e. the Distributor's sales group, these matters would have to be remanded to the Original Adjudicating Authority. Following the same, the matter is remitted back to the adjudicating authority to reconsider the issue in the light of the direction given by the Tribunal in the case of Charanjeet Singh Khanuja - appeal allowed by way of remand. - APPEAL NO: ST/87919, 87922, 87938 & 87941/2017 - A/86100-86103/2018 - Dated:- 20-3-2018 - Shri M V Ravindran, Member (Judicial) Shri D.P. Bhave, Advocate for appellant Shri V R. Reddy, Assistant Commissioner (AR) for respondent All these appeals are directed against Order-in-App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in these cases are distributors, who purchase the goods from Amway at the Distributors h Acquisition Price (DAP)) and sell the same in retail at price not exceeding MRP fixed by the Amway. This activity of the Distributors, in our view, cannot be treated as promotion. marketing or sale of the goods produced or provided by or belonging to the client (Amway), as the sale of the goods purchased by the Distributors from Amway is not the sale of the goods belonging to their client Amway. Once the Amway products have been purchased by a Distributor from Amway, those products cease to belong to Amway, but belong to the Distributor and sale of these goods by the Distributor would not constitute service to Amway. For the same reason, any incentive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchased by his sales group. However, in the impugned orders Service tax has been demanded on the gross amount of commission and no distinction has been made between the commissioner earned by a Distributor from Amway based on his own volume of purchase from Amway and the commission earned by him on the basis of the volume of purchases of Amway products made by his sales group i.e. group of second level of Distributors appointed by Amway on being sponsored by the Distributor. For quantifying the Service tax demand on the commission received from Amway on the volume of purchase made by the distributors sponsored /enrolled by a particular distributor i.e. the Distributor's sales group, these matters would have to be remanded to the Origi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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