2008 (6) TMI 48 - AT - Service Tax

Activity of sales promotion and marketing of goods on commission basis - SCN issued on the ground that impugned services is also clearing and forwarding service, therefore, respondents are liable to pay Service Tax - activity of sales promotion and marketing service came under the scope of Service Tax as business auxiliary service only w.e.f. 1.7.2003 - For the period prior to this the sales promotion and marketing services are not covered under the scope of Service Tax

Summary

The Revenue appealed against a decision where the Commissioner held that the respondent was not a clearing and forwarding agent but engaged in sales promotion and marketing. The Tribunal dismissed the appeal, stating that sales promotion and marketing services on commission basis were not liable for Service Tax before 1.7.2003. The respondent's agreement was only for getting orders on commission basis.