9911796707
TMI Blog2018 (5) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... t All these appeals are directed against Order-in-Appeal No: IM/CGST A-III/MUM/14-17/17-18 dated 11/09/2017 passed by the Commissioner of Central Tax (Appeals - III), Mumbai. Heard both the sides and perused the records. 2. The issue that falls for consideration in all these appeals is whether the activity of the appellant which is in the form of, business auxiliary service', as claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rketing or sale of the goods produced by the client or provided by the client or belonging to the client. This expression, in our view, would not cover the sale of the goods by a person, which belong to him, as the activity of the promotion or marketing or sale of the goods by a person belonging to him would not constitute service. The assessees in these cases are distributors, who purchase the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a month cannot be treated as the consideration received for promotion or marketing or sale of the goods produced by or provided by or belonging to the client, more so, as this commission is not linked to the goods sold by the Distributor, but is linked to the goods purchased by the Distributor from Amway during a month and is in the nature of volume discount. Therefore, no service tax is charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration for Business Auxiliary Service of sales promotion provided to Amway. Therefore, service tax would be chargeable on the commission received by a Distributor from Amway on the products purchased by his sales group. However, in the impugned orders Service tax has been demanded on the gross amount of commission and no distinction has been made between the commissioner earned by a Distributo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order is set aside and the matter is remitted back to the adjudicating authority to reconsider the issue in the light of the direction given by the Tribunal in the case of Charanjeet Singh Khanuja, more specifically at paragraph No. 12 and 13. The adjudicating authority will follow the principles of natural justice before arriving at a conclusions. 4. All the appeals are disposed of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
