9911796707
TMI Blog2019 (8) TMI 1508X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994, was enacted and the reverse charge mechanism became effective. Demand under the category of Advertising Agency Service - period from 18.04.2006 - HELD THAT:- The foreign buyers raised debit notes in respect of the cost of the free samples, which was reimbursed by the respondent. The Commissioner has analyzed the provisions of the Finance Act, 1994 relating to taxation of Advertising Agency Service and held that reimbursement of cost of free samples, was not taxable under the said category. It would appear from the grounds (iii) of appeal that the Revenue now seeks to tax the amount under Business Auxiliary Service upon the basis that the non-resident was the agent of the respondent and distributed the samples in o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is 2006-07. Appeal dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... hat no proceeding can be initiated claiming service tax on reverse charge basis for the period prior to 18.04.2006, when Section 66A of the Finance Act, 1994, was enacted and the reverse charge mechanism became effective. 4. The remaining amount for the period from 18.04.2006 is ₹ 37,47,412/- in respect of which tax was demanded under the category of "Advertising Agency Service". The Commissioner in his order dated 15.06.2009 at internal page 10, paragraph-16, observed that the respondent exported its goods to foreign customers, who in turn traded the goods and distributed free samples to different parties for the purposes of marketing. The foreign buyers raised debit notes in respect of the cost of the free samples, which was reimbu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , who had purchased the respondent's goods. We find that the overseas customers merely sold the goods purchased from the respondent and gave free samples to their customers as part of their selling effort. The overseas customers did not thereby render any service to the respondent and the question of any consideration for any service does not arise. The overseas customers only sought reimbursement of the cost of the goods provided free to their customers. It is now well settled law, in view of the decision of the Hon'ble Supreme Court in the case of Union of India Vs. International Consultants and Technocrats Pvt. Ltd. : 2018 (10) GSTL 401 (SC) that prior to 14.05.2015, the service tax was not payable in respect of reimbursements. In the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
