TMI Blog2023 (8) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... appointments etc. This being so, the arguments of the appellant cannot be appreciated that the services was in the nature of Business Support Service . Moreover, there is no mention of charges paid for the said Business Support Services claimed to have been rendered by the appellants. The consideration is only in the form of a fixed percentage of the total transaction that the principals had with their clients. Therefore, notwithstanding, the averments of the appellants and the affidavits filed by the Counsel on behalf of the appellants, it is not convinced that the appellants have rendered Business Support Services . Thus, an agreement, oral or written, is the source to understand the type of service rendered. In the instant case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the joint commissioner, vide Order-in-Original dated 30.04.2009, along with interest and penalty. On the appeal preferred by the company, Commissioner (appeals) who upheld the order-in-original vide order dated 09/12/2009. Hence, this appeal. 3. Shri Shubham Garg, learned Consultant for the appellants submits that that activities performed by the appellants were in fact related to Administrative services like maintenance of payroll of the employees, maintenance of attendance data, managing office supply needs, planning meeting, scheduling appointments etc.He submits affidavits dated 08.06.2023 and 03.08.2023 to that effect.Learned Consultant further submits that it is incorrect to decide the type of service on the nomenclature used f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived from two companies was for the services rendered, on their behalf to their customers, in management of distribution and logistics; it is important to note that the service was rendered by the appellants on behalf of their clients and therefore as held in Phoenix IT solutions ltd. 2011 (22) STR 400(Tri-Bang), the service falls under Business Auxiliary Service . He further submits that the appellants were receiving commission based on the revenue earned by the two companies from their customers and therefore they are acting as a commission agent as held by the circular F/No. 334/4/2006-TRU dated 28.02.2006. 6. Learned Authorized Representatives further submits that the agreement mentions the service without detailing the roles and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was specifically mentioned that the appellants were rendering the work as a commission agent. He relies on ITC ltd. 2014 (36) STR 481 (DEL) and submits that the object and purpose of the issue of show cause notice is to inform the assessee so that reply or submissions can be made and relevant facts which are in the knowledge of the assessee can be brought on record. After examining and considering the show cause notices, we feel that the assessee was informed and made aware of the contention of the revenue and their stand and stance. 8. Heard both sides and perused the records of the case. It is the case of the appellants that though the consideration received from their clients as Commission in their books of accounts; the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The agreement with Color Bar which is titled Business Support Agreement mentions as under Support Service Clause CCPL hereby appoints LPL as its facilitator for business support for promotion of its products and LPL accepts the said appointment. LPL shall render services including evaluation of prospective customers, processing of purchase orders and fulfillment services, information and tracking of delivery schedules in regard to the sale of the products which CCPL in representing their foreign principal supplies, including the competitor s information. Price Clause CCPL shall pay to LPL a 60% of revenue earned by CCPL from its immediate principal subject to Tax Deduction at Source at applicable rates. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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