2015 (11) TMI 1176 - AT - Service Tax

Demand of service tax - Reverse charge mechanism - Overseas Commission Agent - Held that - Since the issue has already been dealt in detail in 2015 (8) TMI 794 - CESTAT CHENNAI . In the present appeals, the issues being identical in nature as that was involved in the above final order, and the appellants claimed benefit of exemption Notification 14/2004 dt.10.9.2004 which was denied by the lower authorities, the demand of service tax under reverse charge confirmed against the appellants is set aside - Decided against Revenue.

Summary

Issues:
1. Service tax demand under reverse charge on overseas commission paid by the appellant.
2. Confirmation of demands on identical issue against multiple appellants.
3. Imposition of penalties under various sections.
4. Benefit of exemption Notification 14/2004 denied by lower authorities.

Analysis:

Issue 1: Service tax demand under reverse charge on overseas commission paid by the appellant
- The main issue in this batch of appeals was the service tax demand under reverse charge on the overseas commission paid by the appellant to their commission agents abroad. The Commissioner of Central Excise issued a show cause notice demanding service tax under the proviso to Section 73(1) of the Finance Act, 1994. The adjudicating authority confirmed the demand and imposed penalties under Section 77 & Section 78. However, the demand for service tax relating to a period prior to 18.4.2006 was dropped. The appellant challenged this decision by filing an appeal.

Issue 2: Confirmation of demands on identical issue against multiple appellants
- In appeals filed by various appellants, the adjudicating authority confirmed the demands on the identical issue and dropped penalties proposed under various sections. Both the Revenue and the assessee filed appeals before the Commissioner (Appeals), except in certain cases where the Revenue did not file appeals. The Commissioner (Appeals) rejected appeals from both the assessee and the Revenue.

Issue 3: Imposition of penalties under various sections
- The adjudicating authority imposed penalties under Section 76, 77 & 78 in some cases but dropped them in others. The appeals were filed against these orders-in-appeal, with appellant-assessees filing 27 appeals and Revenue filing 13 appeals.

Issue 4: Benefit of exemption Notification 14/2004 denied by lower authorities
- The appellants claimed the benefit of exemption Notification 14/2004 dated 10.9.2004, which was denied by the lower authorities. The issue of denial of this exemption and the confirmation of service tax under reverse charge were key points in the appeals.

Final Decision:
- After hearing both sides and considering that the issue had already been addressed in a previous final order, the Tribunal set aside the confirmation of service tax under reverse charge against the appellants. The Revenue's appeals were rejected, and the Assessees' appeals were allowed, following the Tribunal's Final Order dated 31.12.2014. The decision was pronounced in open court on 31.12.2014.