2012 (6) TMI 214 - AT - Service Tax

Business Auxiliary Service - appellant received commission from Jaipur Golden Transport Company Held that - agreement between the appellant and Jaipur Golden Tpt. Company shows that later was engaged in transport business and the former was engaged in booking goods for the former. There was also prohibitory clause i.e. clause (2) refraining the appellant from carrying out such activity for any other transport. The appellant was getting commission @ 6.5 per cent of the booking amount. All these features clearly suggest that appellant s earning was linked with transport charges extending its helping hand for marketing the service of M/s. Jaipur Golden Transport Company, appeal is dismissed - Decided against the assessee.

Summary

Issues:
Whether the service provided constitutes "Business Auxiliary Service."

Analysis:
The appellant argued that the service provided was not for promoting or marketing the client's service but merely involved receiving a commission for billing and storing goods. The appellant contended that this did not fall under "Business Auxiliary Service." However, the Departmental Representative supported the lower authority's order.

Upon examining the show cause notice and the agreement between the appellant and the transport company, it was revealed that the appellant received a commission for booking goods for the transport company. The agreement contained a clause prohibiting the appellant from engaging in similar activities for other transport companies. The appellant earned a commission linked to transport charges, indicating assistance in marketing the services of the transport company. These findings led to the conclusion that the appellant provided taxable Business Auxiliary Service. Consequently, the appeal was dismissed.