MMTC LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, VISAKHAPATNAM

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) The learned advocate for the appellants submits that the transactions between NMDC and the appellants are in the nature of sale and purchase and this is recognized by the Sales Tax authorities of the State Government. The Income Tax Appellate Tribunal has also held that the transaction between NMDC and the appellants are in the nature of sales and accordingly held that the amount earned by the appellants cannot be treated as commission paid by NMDC and no TDS was deductable at the hands of NMDC. In this regard, he relies on the order dated 20 -7 -2009 of the Income Tax Appellate Tribunal. 4. The learned Commissioner (AR) reiterates the findings of the Adjudicating Authority. 5. We have carefully considered the submissions from both sides and perused the records. Notwithstanding the claim by the appellants to be a canalizing agent, the transactions between NMDC and the appellants are in the nature of purchase and sale as duly recorded by the Commissioner. This is also the view held by the Sales Tax Department and Income Tax Department. Therefore, we do not, prima facie, treat the profit earned by the appellants as consideration towards service rendered to NMDC. Therefore, there shall be waiver of predeposit of dues as per the impugned order and stay of recovery thereof till the disposal of the appeal.