2013 (4) TMI 669 - AT - Service Tax

Sole selling agent - Change in percentage of rate of commission - Demand of tax - As per appellant the demand of tax on the presumption that they received commission for the month of March 2010 is totally wrong - Held that - In my considered view, the matter is required to be examined by the lower authority on this issue. Accordingly, the impugned order is set aside and the matter is remanded back to the original authority to consider the submission of the appellant in this issue amongst other and to pass order in accordance with law.

Summary

Issues:
Tax demand on the appellant for alleged receipt of commission in March 2010 disputed by the appellant.

Analysis:
The appellant, a sole-selling agent for a company, received commission on a provisional basis, which was later revised by the Ministry of Corporate Affairs with retrospective effect. The appellant recalculated the commission amount and refunded the excess. However, a dispute arose regarding the treatment of the differential amount as commission for March 2010. The appellant argued that they did not receive any commission in March 2010 and therefore did not file the required return. The tax demand was based on the presumption of commission receipt in March 2010, which the appellant contested. The Tribunal found that the matter required further examination by the lower authority to consider the appellant's submissions. Consequently, the impugned order was set aside, and the case was remanded back to the original authority for a comprehensive review and a decision in accordance with the law. The appeal was allowed by way of remand, emphasizing the need for a detailed assessment of the disputed issue among others.