TMI Blog2019 (6) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... defined under Section 65(104c) read with Section 65(105) of Finance Act, 1994 and therefore, the consideration received for the said services is accordingly taxable. There are no reason to deviate from the aforesaid findings of the Tribunal. Besides, the Commissioner while recording the opinion that the services rendered by the appellant who are having necessary infrastructure facilities is also in the nature of Support Service of Business or Commerce has confirmed the demand - In their grounds of Appeal the Appellant has not rebutted the said finding of the Commissioner. There are no merits in the appeal - appeal dismissed. - Service Tax Appeal No. 86385 of 2013 - A/86082/2019 - Dated:- 7-6-2019 - DR. D.M. MISRA, MEMBER (JUDICIAL) And MR. C.J. MATHEW, MEMBER (TECHNICAL) Shri Prashant Patankar, Advocate for the Appellant Shri M.K. Sarangi, Authorized Representative for the Respondent ORDER Per: Dr. D.M. Misra This is an appeal filed against Order-in-Original No. 11/ST/2012 dated 24.12.2012 passed by the Commissioner of Central Excise, Customs Service Tax, Nashik. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that confirmation of Service Tax of ₹ 70,13,483/- on the consideration of ₹ 6,70,07,437/- related to the product Badshah Khaini has been wrongly confirmed for sale of the said product in certain areas of Karnataka. He has submitted that there is no written agreement and no rights have been surrendered by the dealers who were marketing of the goods. The said amount has not been received from any specific entity under noncompetition agreement with dealers, even though the appellant described it as non-competition fees primarily for the reason that the said amount had been collected from scattered dealers and wholesalers of Badshah Khaini under the threat of competition. There has been no specific agreement with any dealer, wholesaler or retailer in this regard. Further, he has submitted that the income disclosed to Income Tax authorities cannot be considered as receipt against some specific services without evidence. In support, he has referred to the judgment of this Tribunal in the case of Commissioner of Central Excise, Ludhiana Vs. Mayfair Resorts m- 2011 (21) STR 581 (Tri-Del) and Commissioner of Central Excise, Ludhiana Vs. Zoloto Industries 2013 (294) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , infrastructure and supported the business in marketing such product by the dealers for which they were compensated by such dealers, thus, the said activity rightly come under the scope of Support Service of Business or Commerce. In support, he has referred to the judgment of this Tribunal in Jamna Auto Industries case (supra). Further distinguishing the judgment of this Tribunal in the Mayfair Resorts case (supra) cited on behalf of the appellant, he has submitted that in the said judgment, there was a letter dated 21.3.2005 to Commissioner of Income Tax, whereby, the amount of ₹ 35.00 lakhs is said to be not attributable to consideration from the taxable service provided, but in the present case by the statement dated 03.12.2009, it is clear that the amount has been collected as a consideration in cost to support of the business of the dealers with regard to the product Badshah Khaini. The learned AR further submitted that since the fact was not intimated to the Department and the appellant failed to file ST-3 returns, disclosing the said transaction, therefore, extended period of limitation has been rightly invoked against them. 5. Heard both sides a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994 defines support services of business or commerce as follows : Section 65(104c) - Support Services of Business or Commerce means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. Explanation - For the purposes of this clause, the expression infrastructural support services includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security 4.2 The taxable service in this regard has been defined under Section 65(105)(zzzq) of the Finance Act, 1994 as follows : 65(105) any service provided or to be provided (zzzq) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and having necessary expertise and infrastructure forayed themselves into the territories operated by or under the C F agents of the manufacture of the said tobacco products i.e. M/s. FPPL. It has been categorically established ruing investigation that the team of M/s. SRPL approached the dealers of the C F agents of M/s. FPPL and offered them the service of procuring the purchase orders, providing the transport and manpower required to supply the tobacco product viz. BadshahaKhaini and collection of amount against the sale of the said products. The said dealers who were smaller in terms of the infrastructural power of M/s. SRPL had to agree with the proposal of M/s. SRPL lest the business would be walloped by M/s. SRPL and they (dealers) would be soon out of business, M/s. SRPL by their proposal supported the smaller businesses of these dealers for which they would collect an agreed sum per bag of Badshaha Khaini from the wholesalers/retailers of said dealers to whom the goods were sold. I find that M/s. SRPL by their above proposal created a win-win situation for the said dealers by which both the dealers and M/s. SRPL would co-exist and stand to gain in pure business terms. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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