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TMI Blog2015 (9) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... 13/2003-ST even if one resorts to (the so-called) strict interpretation of the said Notification. In our view the wording of Notification No. 13/2003-ST does not suffer from any ambiguity and readily lends itself to plain and straight forward interpretation rendering recourse to interpretational discourse unnecessary. - Impugned order is set aside - Decided in favour of assessee. - Service Tax Appeal No.551 of 2009 - Final Order No. 52857/2015 - Dated:- 10-9-2015 - Mr. G. Raghuram, President and Mr. R.K. Singh, Technical Member, JJ. For the Petitioner : Shri Arshad Hidayatullah, Senior Advocate with Shri Jitendra Singh, Advocate For the Respondent : Shri Ranjan Khanna, A.R. ORDER Per R.K. Singh: Appeal has been f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) appellant was much more than a mere commission agent (ii) its main/primary function was not that of a commission agent and therefore it was not eligible for the benefit of Notification No. 13/2003-ST. 5. We have considered the contention of both sides. We also perused a representative agreement that the appellant entered into with Konkan Agro Marine Industries (P) Ltd., Delhi in terms of which the appellant agreed to perform the under-mentioned functions: (a) To procure all orders independently and arrange for completion of necessary excise formalities /payment of excise duties prior to dispatch frm KAM distillery, where necessary. (b) To make all arrangements for distributing the products in the Territory as instructed by KAM. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint of time. Further COMMISSION AGENT undertakes to provide more funds (if mutually agreed) considering the growth in the volume or change in excise levies. 10. COMMISSION AGENT shall obtain such permissions, licenses and /or registrations and comply with such regulations as may be required from the Government/Local Bodies or any other Authority. 11. COMMISSION AGENT shall forthwith forward to KAM all documents, papers, orders, notices, etc. addressed to KAM and received by the COMMISSION AGENT for necessary action. 12. COMMISSION AGENT shall bear and pay all rents, electricity, water and other charges and outgoing including local and municipal taxes and levies in respect of the Depot. Paragraph (c) of the Agreement rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... half of another person for a consideration which is based on the quantum of such sale or purchase. 2. This notification shall come into force on the 1st day of July, 2003. [Notification No. 13/2003-S.T., dated 20-6-2003] It is evident from the Explanation contained in the said Notification that the Commission Agent means a person who causes sale or purchase of goods, on behalf of another person for a consideration which is based on the quantum of such sale or purchase. It is evident from the provisions of the agreement quoted above that the appellant was causing sale or purchase of goods on behalf of its clients (liquor company). It is also evident that the consideration received by the appellant was based on the quantum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaken by M/s BSL are beyond the scope of function of commission agent. They are providing promotional activities, infrastructural support, promotional event management. Further since BSL was acting as Del Crederer for its clients, it stood as guarantor about the solvency of purchaser. These activities are taxable under Business Auxiliary Services It is not a case that M/s BSL were just supplementing the efforts of the clients for business promotion rather they were mainly responsible for undertaking the aforesaid promotional activities. These activities are beyond the scope of the function of commission agent as defined in the notification. 21.4 Thus, the eligibility to the Notification is to be determined strictly in terms of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts to (the so-called) strict interpretation of the said Notification. In our view the wording of Notification No. 13/2003-ST does not suffer from any ambiguity and readily lends itself to plain and straight forward interpretation rendering recourse to interpretational discourse unnecessary. 9. While CESTAT judgments in the cases of CST, Ahmedabad vs. Somani Exports - 2009 (13) STR 562 (Tri. Ahmd.) and CCE, Allahabad vs. Chandan Chemicals - 2007 (7) STR 578 (Tri. Del.) are supportive of the above analysis, the analysis itself is so internally consistent, logical and rational as to require no such support for sustenance. 10. In the light of the foregoing we set aside the impugned demand of ₹ 77,73,213/- and the interest and pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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