2007 (7) TMI 98 - AT - Service Tax

Appellant contended that the goods received by the appellant are for sale and sold by them and the goods are not dispatch by them on direction by the supplier. On the basis of amount deposited already, stay granted for recovery of remaining amount of service tax and penalty granted

Summary

Issues:
1. Waiver of pre-deposit of Service tax.
2. Classification of the applicant as a consignment agent or a commission agent.

Analysis:
1. The applicant sought a waiver of pre-deposit of Service tax amounting to Rs. 10,97,758/- for the appeal hearing before the Commissioner (Appeals). The Tribunal considered the applicant's case and found that the amount already deposited was sufficient for the appeal hearing. Consequently, the Tribunal decided to waive the pre-deposit of the remaining Service tax and penalty, granting the applicant's request.

2. The main issue in this case was the classification of the applicant as either a consignment agent or a commission agent. The revenue contended that the applicant functioned as a consignment agent based on a previous Tribunal decision. However, the applicant argued that they were a commission agent as per a Board Circular clarifying the roles of consignment agents and commission agents. The Tribunal noted that the previous decision did not consider the clarification dated 20-6-2003, which distinguished between the roles of consignment agents and commission agents. It was observed that the applicant sold goods to customers after receiving them from the manufacturer, without dispatching them on the supplier's direction. Therefore, the Tribunal found that the applicant had a strong case for being classified as a commission agent, not a consignment agent, and ruled in favor of the applicant by allowing the stay petition.

This detailed analysis of the judgment thoroughly examines the issues of pre-deposit waiver and the classification of the applicant, providing a comprehensive understanding of the Tribunal's decision.