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TMI Blog2014 (5) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... te authority, it is clear that the respondent has not undertaken any such activity even though the agreement provided for the same. Even otherwise, when a number of services are rendered, for the purpose of classification, the principal service which gives the essential character to the service has to be seen. From the documentary evidence available on record, it is seen that the essential character of the service is that of a Del Credere Agent which is classifiable under Business Auxiliary Service. Following decision of CST, Bangalore v. N.K. Agencies Pvt. Ltd. reported in [2010 (7) TMI 192 - KARNATAKA HIGH COURT] - Decided against Revenue. - ST/313/2006-Mum. and Cross Objection No. ST/CO/76/2007-Mum. - Final Order Nos. A/1262-1263/2013-W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking the activity of market survey exigible to Service Tax under Market Research Agency s services and accordingly a notice was issued demanding Service Tax of Rs. 41,71,722/- on the total commission paid to the respondent amounting to Rs. 8,34,34,430/- during the period 1988-99, to 2001-02. The notice was adjudicated upon and the demands were confirmed along with interest and penalties were also imposed by classifying the services rendered by the respondent herein as Market Research Agency Service. The respondent preferred an appeal before the lower appellate authority who vide the impugned order concluded that the services rendered by a Del Credre Agent does not merit classification as a Market Research Agency. He also recorded a finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Karnataka in the case of CST, Bangalore v. N.K. Agencies Pvt. Ltd. reported in 2010 (20) S.T.R. 176 (Kar.), who were also appointed as Del Credere Agent by RIL and entered into more or less identical agreement as obtaining in the present case. In the said case, the Revenue sought to demand Service Tax under the category of clearing and forwarding agency service and the Hon ble High Court held that the services of Del Credere Agent would be appropriately classifiable under the category of Business Auxiliary Service and they cannot be said to have rendered services of clearing and forwarding agency. It is also pointed out that in the agreement in the said case also, there was a provision for submission of a report to the Principal every ..... X X X X Extracts X X X X X X X X Extracts X X X X
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