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2009 (9) TMI 669 - AT - Service TaxServices received out of India- The assessee has been getting export orders from abroad through some agents stationed outside India. These agents provide the service of procuring export orders for the assessee. Intelligence further revealed that the assessee paid certain amount as commission to the said foreign agents for getting export orders. The Department consequently obtained the information that during the months from 1-7-2003 to 15-6-2005, on the evidence it was concluded that the said agents have been rendering the service of promotion or marketing or sale of goods produced or provided by or belonging to the assessees which falls under the purview of Business Auxiliary Service . In the light of the decision of Indian National Shipowners Association v. Union of India 2009 -TMI - 32013 - HIGH COURT OF BOMBAY, held that prior to 18.4.2006, they are not liable to service tax, as the period of dispute is 1.7.2003 to 15.6.2005, thus no liability arise. Appeal is allowed.
The Appellate Tribunal CESTAT Bangalore issued an order against the Order-in-Original No. 5/2008 & 06/2008 dated 2-9-2008, passed by the Commissioner of Customs, Central Excise & Service Tax, Tirupathi. The case involved an assessee who paid commission to foreign agents for export orders. The Department determined that the service provided by the agents fell under the purview of 'Business Auxiliary Service' as defined by section 65(19) of the Finance Act, 1994. The lower authority issued a show-cause notice for service tax and penalties, which the appellants contested. The adjudicating authority confirmed the demand and penalties, but the appellants appealed. The issue was whether the appellants were liable to pay service tax for the commission paid to non-resident agents. The Tribunal found in favor of the appellants, citing decisions from the High Courts of Mumbai and Delhi. The impugned orders were held to be unsustainable and were set aside, resulting in the appeals being allowed with consequential relief.
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