2010 (1) TMI 958

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..... Sudhakar Pai, Mangalore (here-in after referred as the appellants) against the Orders-In-Original No. 22/2009AC dated 17-06-09 passed by the Assistant Commissioner of Central Excise, Udupi Division, Udupi. Brief facts of the case 2. The appellant was registered under the category of 'business auxiliary service' (BAS). The department noticed that during 2003-04 the appellant had received an amou .....

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..... r 2003-2004 as a Guarantee Commission during the relevant accounting year. The appellant is holding a directorship in the company and the payment of commission received from the company cannot be subjected to service tax as there is no client/principal relationship exists : 2. Though the so called services were rendered during the financial year 2003-04, the commission was actually received by th .....

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..... or the subject period. One of the important features of taxable service under the category of BAS is the services should be provided to a client i.e. to an external person for a consideration. In this case the appellant is the director of the company from whom commission was received and therefore the client and principal relationship is absent. The payment of commission was approved by the board .....

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