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TMI Blog2011 (2) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... mpted from service tax w.e.f. 1st July, 2003 vide notification No. 13/2003-S.T., dated 20th June 2003 - A consignment agent’s job is to receive the goods from the principal and dispatch them on the directions of the principal, whereas a commission agent’s job is to cause sale/purchase “on behalf of another person - Held that: present exemption is available only to such commission agent who is not a consignment agent - Appeal is allowed - ST/54 and 57-60/2006 - ST/49-53/2011(PB) - Dated:- 18-2-2011 - S/Shri Ashok Jindal, Mathew John, JJ. REPRESENTED BY : Shri S. Yadav and Ms. Sukriti Das, Advocates, for the Appellant. Shri Sonal Bajaj, SDR, for the Respondent. [Order per : Ashok Jindal, Member (J)]. These appeals have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .R. submits that as per agreement submitted by the appellants it is not clear whether the appellants are working as selling agent of their principals. In fact, the appellants are supplying the goods at the instruction of their principals to the prospective buyers and all the control of their activities is managed by their principals. He also relied upon Board s Circular No. 59/A/2003 dated 20-6-2003 and submits that as the appellants are engaged in both the activities i.e. commission agent as well as clearing forwarding agent they are liable to pay service tax. 4. Heard and considered. 5. We have carefully gone through the submissions made by both sides and also perused the agreement produced before us. After going through the agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A consignment agent s job is to receive the goods from the principal and dispatch them on the directions of the principal, whereas a commission agent s job is to cause sale/purchase on behalf of another person. Thus, the essential difference is that a commission agent sells or purchases on behalf of the principal while consignment agent receives and dispatches the goods on behalf of a principal. It is possible that a person may be a consignment agent as well as a commission agent. Such a person would already be covered in the category of Clearing and Forwarding agent and would be liable to pay service tax in that category. In other words, the present exemption is available only to such commission agent who is not a consignment agent. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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