2019 (6) TMI 1021 - AT - Service Tax

Business Auxiliary services - recipient of consideration as commission agent - benefit of N/N. 13/2003-ST dated 20th June 2003 - HELD THAT - The appellant had been promoting the sale of products manufactured by another entity; it was also not a mandatory function required to be performed by the appellant as manager of retail outlet. They have also chosen to remit the entire duty, tax, interest and penalty without demur. Appeal dismissed.

Summary

Issues:
1. Liability of the appellant for tax under section 78 of Finance Act, 1994.
2. Imposition of penalties under sections 77 and 78 of Finance Act, 1994.
3. Applicability of exemption under notification no. 13/2003-ST dated 20th June 2003.
4. Claim of suppression, fraud, collusion, or mis-statement by the appellant.
5. Promotion of sale of products by the appellant as a commission agent.

Analysis:
1. The appeal sought relief from an order upholding the appellant's liability for tax under section 78 of the Finance Act, 1994, along with penalties under sections 77 and 78. The appellant, operator of a petrol cum service station, had paid the tax, interest, and a portion of the penalty as ordered by the original authority.

2. Despite the absence of representation for the appellant, the tribunal proceeded with the disposal of the matter based on records and the assistance provided by the Learned Authorised Representative. The appellant was involved in managing a retail outlet as a commission agent, making them liable for tax under 'business auxiliary service' as per relevant sections of the Finance Act, 1994.

3. The appellant contended that the goods were subject to sales tax and claimed exemption under notification no. 13/2003-ST. They argued that the commission earned did not fall under the definition of 'business auxiliary service' and denied any wrongdoing like suppression or fraud.

4. The tribunal observed that the appellant promoted the sale of products manufactured by another entity, a function not mandatory for a retail outlet manager. Despite the appellant's full payment of duty, tax, interest, and penalty, the grounds of appeal were considered and rejected by the first appellate authority.

5. Considering the facts and circumstances, the tribunal found no merit in the appeal and dismissed it. The decision was based on the grounds already addressed by the first appellate authority, leading to the rejection of the appeal.

This detailed analysis of the judgment covers the issues of liability for tax, penalties, exemption claims, alleged wrongdoing, and the promotion of product sales by the appellant, providing a comprehensive understanding of the tribunal's decision.