TMI Blog2008 (11) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... les from the principal and provide for trial to customer - transaction thereafter take place between principal and customer directly - respondent gets a fixed commission only after the sales takes place and payment is realized - respondent is a commission agent & entitled to exemption under notification No. 13/2003 - ST/274/2005 - A/2435/2008-WZB/AHD - Dated:- 18-11-2008 - Ms. Archana Wadhwa, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they had wrongly paid service tax under the head business auxiliary service. The original adjudicating authority rejected the refund claim and confirmed service tax demand for Rs. 34,640/- for the period from Oct 2003 to July 2004 with interest, imposed penalties under Sections 76, 77 and 78 of the Finance Act, 1994. On appeal, the Commissioner (Appeals) set aside the order. 2. Heard both side ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption under notification No. 13/2003 dated 20-6-2003, which was effective from 1-7-2003. He also drew our attention to the definition of commission agent in the Notification "As a person who causes sale or purchase of goods on behalf of another person for a consideration which is based on the quantum of such sale or purchase". He submits that the Commissioner (Appeals) has decided after consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted above, it is clear that the respondents get commission only when the sale materializes and payment is received from the customers. However, if business auxiliary services was the main activity, the Revenues could not have been linked totally to the sale of the product. We agree with the view taken by the Commissioner that primarily the respondent is a Commission Agent and other activities are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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