TMI Blog2020 (5) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(19) of the Act. Appeal dismissed - decided against appellant. - Service Tax Appeal No. 407 Of 2010 - A/60350/2020 - Dated:- 3-3-2020 - HON BLE DR. D. M. MISRA, MEMBER (JUDICIAL) AND HON BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL) None for the Appellant Shri Amandeep Kumar, Authorised Representative for the Respondent ORDER Per: Dr. D. M. Misra None present for the appellant. Heard the Ld. AR for the Revenue. 2. This is an appeal against the OIA No. 208-213/CE/LDH/2009 dated 15.10.2009 passed by the Commissioner (Appeals) of Central and Customs, Chandigarh. 3. Briefly stated the facts of the case are that the appellant are engaged in distributors of M/s Amway India Enterprises and are not discha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company s product as per the RCM Business Marketing Plan (RCM stands for Right Concept Marketing Plan). According to terms and conditions of the agreement between the parties, FSL issues a scratch card having a password along with a standard product Kit of the Products by charging a price for same. Any person can submit an application through the internet using password and after acceptance becomes a distributor of the company for the purpose of selling the company s product under the RCM plan. Minimum purchases in terms of RCM products prescribed by the company from time to time is compulsory for a distributor during the month in which he desires to have the commission credited in his account. Company is obligated to remit consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E are not known to A . Ld. Advocate has submitted that A gets commission on purchases made by C , D and E . It is alternatively contented on behalf of the appellants that the so-called commission paid by FSL to the appellant in respect of purchases made by subsequent distributors C , D and E does not amount to commissions for promotion or marketing activities permitted by the petitioner but is dividend paid to A for his efforts for introducing the scheme to new introducees who also become distributors of FSL. 7. On analysis of the terms and conditions of similar agreements between the FSL and the petitioners, the adjudicating authority confirmed the tax liability against the appellants. We are satisfied that RCM (Righ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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