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TMI Blog2020 (2) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... rendering the service of selling their space on their ships. This, clearly falls under the category of Business Auxillary Service - the appellant is liable to pay service tax on Business Auxiliary Services. Penalties - HELD THAT:- The penalties imposed by the lower authority have been set aside by the First Appellate Authority and the Revenue is not in appeal against such setting aside of the penalties. Appeal dismissed - decided against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... That whereas, EMU Lines Pvt Ltd., (Party No.1) is a registered Multimodal Transport Operator under the Multimodal Transportation of Goods Act - 1993 to carry the business multimodal transportation and has its own logo of service mark and trade name as EMU LINES, but does not have adequate infrastructure and marketing team to carry the business of multimodal transportation at Hyderabad and its surrounding in the state of Andhra Pradesh is desirous to make an agreement / contract for the purpose of appointing the agency with M/s Orange Logisys Pvt Ltd., (Party No.2), which is a professionally managed concern and is believed to be having adequate infrastructure and well experienced marketing team. That the Party No. 1 hereby appoints Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hotocopy of the Bill of Lading issued and signed on a fortnightly basis to the Regional office of Party No. 1 based in CBD Belapur, Navi Mumbai. That Party No. 2 shall keep all necessary records to the utilization of Bill of Lading of Party No. 1 and shall submit a weekly report to Party No. 1 on utilization of the same. All terms and conditions in this agreement as well as relating to further dealings between Party No. 1 and Party No. 2 shall remain known to them only and in no case, it shall be disclosed to a third party by both the parties. That Party No. 1 shall give a Sales Tariff to Party No. 2 from time to time and Party No. 2 shall be allowed to put his own mark up on the sales tariff and Party No. 2 shall keep this mark up a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered. Learned DR, on the other hand seeks to distinguish the present case on the facts. He would submit that as far as the case laws relied upon by the appellant are concerned they were in the context where the assessee had purchased space on the ships and in turn sold it for a profit. Such a transaction is on principal to principal basis where any profit or loss is on account of the assessee. The present case is different as can be seen from the agreement. In the present case, agreement shows the assessee appellant has been appointed as "an agent of the principal" namely the shipping line and they were getting paid a brokerage for rendering the service of selling space on their ships. The service tax is therefore proposed to be levied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... client;] (v) production or processing of goods for, or on behalf of the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to "manufacture" of excisable goods. Explanation - For the removal of doubts, it is hereby declared that for the purposes of this clause, - (a) "Commission Agent" person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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