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TMI Blog2018 (11) TMI 1517X X X X Extracts X X X X X X X X Extracts X X X X ..... siness of the Sales Officers, on the contrary, the appellant provided employment to the Sales Officers in selling the insurance policies for which they obtained necessary agency certificates from the respective insurance companies. Demand set aside - appeal allowed - decided in favor of appellant. - APPEAL No. ST/89836/2014 - A/87346/2018 - Dated:- 10-8-2018 - Dr. D.M. Misra, Member (Judicial) And Mr. Sanjiv Srivastava, Member (Technical) Shri S.B. Awate, Consultant, for appellant Shri M.K. Sarangi, Joint Commissioner (AR), for respondent ORDER Per: Dr. D.M. Misra This is an appeal filed against order-in-original No. 44/ST/COMMR/2014 dated 24.7.2014 passed by Commissioner of Central Excise, Customs Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the appellant as SO. After completing this quota, sales officers would be given ₹ 50,000/- for purchase of motor cycle/Hero Honda for his business enlargement purpose. If further promoted to top code i.e. senior marketing officer (SMO), he would be given maximum ₹ 3 lakhs for purchase of four-wheeler car which he cannot sell till he is in service. The appellant was returning the FCP deposit of ₹ 2,000/- if the sales officer fails to make 25 sales officers join the appellant. However, a sales officer who could not get even a single sales officer recruited under him, was not entitled to get any amount including the amount of ₹ 2,000/- deposited by him as FC deposit. Alleging that the appellant was rendering the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Co./Life Insurance Corporation of India and some portion was retained for the purposes of administrative cost/expenses. The remaining amount was paid towards commission, incentive and development of the business. On the entire amount received from card purchasers/policy holders against the life care facility card, they have discharged service tax. The FCP deposit collected by the appellant from the sales officers in selling their cards is wrongly held to be business support service and accordingly not sustainable in law. He has submitted that the sales officers were not doing their business of selling insurance policies and business cards in their individual capacity, which has been wrongly alleged in the show cause notice. He ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrary, the sales officers were providing support to their business by way of selling the business cards. Learned Advocate further submitted that at the time of joining of the sales officers, though they have collected ₹ 2,000/- and ₹ 3,000/- as deposit and the condition prescribed for refund of the said deposit even if not complied with, the FCP deposits of the sales officers were returned to them by the appellant, which has been reflected in their balance sheet. The appellant was discharging service tax on registration fees and membership fees collected from the sales officers whereas no service tax was paid on FCP deposit being returnable deposit to the sales officers, which is reflected in their balance sheet as another hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icers fail to bring further 25 numbers of Sales Officers, the FCP amount collected from each of the Sales Officers are refunded to them. In support, he has filed a Chartered Accountant s certificate. As per clause (104)(c) of Section 65 of the Finance Act, 1994, the meaning of Support of Business or Commerce Service means any service in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment service, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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