COMMISSIONER OF SERVICE TAX, AHMEDABAD Vs. SOMANI EXPORTS

JUDGEMENT

(1.) A short issue is involved in this appeal filed by the Revenue. Service tax has been demanded from the respondent on the ground that services rendered by them was covered by business auxiliary services. Respondent contended that their activity was only of a commission agent. They were procuring orders from various buyers and once the order executed, they were getting commission and in order to earn more commission, respondents were promoting the products of various manufacturers which is a part and parcel of marketing strategy. Further, they get the commission only when the product was purchased. Having regard to the nature of services rendered by the respondent, Commissioner (Appeals) held that they were entitled to the benefit under notification No. 13/2003 -S.T. dated 20 -6 -2003.

(2.) HEARD both the sides. The activities of the appellants as discussed in the impugned order shows that they are mainly providing services of commission agents and activities of sales promotion etc. are undertaken to earn more commission. Therefore, there is no reason to set aside the impugned order and hence the appeal is rejected.