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2019 (7) TMI 1784 - CESTAT KOLKATABusiness Auxiliary Services - Appellant engaged in rendering services to their clients in connection with sale and purchase of goods produced by the clients for which they earn commission, apart from manufacturing business - eligibility for benefit under N/N. 13/2003 - Exemption denied on the sole ground that the appellant would be paid commission for the ‘services rendered’ and that in the agreement, it has not been mentioned that the appellant has been appointed as ‘commission agent’ - HELD THAT:- The Ld. Commissioner has committed a serious error in denying the exemption. The agreements entered by the appellant, in substance, is for procuring orders on behalf of the clients for which the appellant would be paid commission to be calculated at the rate on sales amount. It is, therefore, not in dispute that the appellant has to cause sale of products on behalf of the client. Mere fact that in the subject agreements, the appellant has not been specifically addressed as ‘commission agent’ will not dis-entitle the appellant from availing the benefit of exemption provided in the notification. Reliance can be placed in the case of CHAHABRIA MARKETING LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI [2016 (3) TMI 1050 - CESTAT MUMBAI] where it was held that Once it is held that the assessee is a ‘commission agent’ by virtue of being engaged in the activity of causing sale or purchase for a consideration which is linked to the quantum of sale or purchase, the benefit of this Notification will cover all business auxiliary services rendered by such a ‘commission agent’. The impugned demand of service tax, interest and penalty cannot sustain and hence, the same are set aside - Appeal allowed - decided in favor of appellant.
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