2001 (9) TMI 2

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..... shall pay a commission at the rates mentioned in the scheduled to the contract on the net sale proceeds on the orders received through the Agent and executed by the Principal; that the publicity and sale promotion activities for promoting the market of the products will be done by both the Principal and the Agent independently and by mutual agreement a portion of the expenditure on publicity and sale promotion activities by any party may be reimbursed by the other party. The agreement further stipulated that the Agent shall maintain complete records of market survey conditions of market, position of the orders booked by him and will keep watch over dealers appointed by the Principal. 2. The appellants, M/s. Prabhat Zarda Factory and Sh .....

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..... y under Section 81(2) of the Act for his wilful neglect and connivance for not collecting and paying the Service Tax. 4. The present appeals and stay petitions are against the above order of the Commissioner. The stay petitions filed by the appellants are listed today for hearing. We have heard Shri K. Narasimhan, Advocate and Shri K.K. Banerjee, Advocate for the appellants and Shri V.K. Chaturvedi, SDR for the respondent. Ld. Counsel for the appellants submits that no Service Tax is liable to be imposed in the present case since M/s. Ratna Zarda Company are appointed by the appellants only for collecting the orders from the potential buyers and they are in no way concerned either with the sale or delivery of the goods to the buyers .....

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..... ates the actions taken under the provisions of the Act of 1994 with retrospective effect and not those taken under the provisions of the Rules. The ld. Counsel for the appellants however does not plead any financial hardship. 5. We have carefully considered the submissions made before us. The revelant clauses of the agreement entered into by the appellants, M/s. Prabhat Zarda Factory with their agent, M/s. Ratna Zarda Factory are already summarised in the opening para of this order. These clauses clearly stipulate the payment of commission to the agent on the orders received through this. It is also stipulated that the agent shall partake in the activity of promoting the marketing of the products and the sale promotion. The agent under .....

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