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TMI Blog2025 (1) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner (Appeals) has upheld the order of the Original Authority dropping the demand raised against the Respondents treating the services provided by the Respondents to their overseas clients as export of services. 2.1 Respondents have entered into an agreement with their overseas client for the purpose of identification of prospective customers for sale of their goods. After identification and introduction, all other dealings in relation to the supply of goods i.e. agreement of sale, supply and remuneration for the same is between the overseas supplier and Indian buyers. Respondent claimed that they have no role to play. 2.2 On the basis of the audit objection raised Show Cause Notice was issued to the Respondent by treating the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were providing services on their own account. Further, they were engaged in the promotion and marketing of the products manufactured by the SRAG and helping to SRAG to develop its brand in the Indian market and also doing various activities like solicit orders and promotion of the distribution of the product of the SRAG within the Indian territory and developing market for the SRAG in India. They were supposed to investigate about the solvency of the customers who intend to purchase the product of the SRAG. They were not supposed to enter into any commitment with the buyers on the behalf of the SRAG without mutual agreement in this regard. The title of the goods remained with the SRAG till it was delivered to the buyer. The price of the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eiver and the intermediary. The relevant para's of the said education guide is reproduced below:- "5.9.6 What are "Intermediary Services"? Generally, an "intermediary" is a person who arranges or facilitates a supply of goods, or a provision of service, or both, between two persons, without material alteration or further processing. Thus, an intermediary is involved with two supplies at any one time: (i) the supply between the principal and the third party; and (ii) the supply of his own service (agency service) to his principal, for which a fee or commission is usually charged. For the purpose of this rule, an intermediary in respect of goods (such as a commission agent i.e. a buying or selling agent, or a stockbroker) is exclude ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very Agent Even in other cases, wherever a provider of any service acts as an intermediary for another person, as identified by the guiding principles outlined above, this rule will apply. Normally, it is expected that the intermediary or agent would have documentary evidence authorizing him to act on behalf of the provider of the 'main service'." 4.5 Mumbai Bench has in case of IDEX India Pvt. Ltd [2023 (73) G.S.T.L. 82 (Tri. - Mumbai)] has held as follows: "6. I have heard Learned Counsel for the appellants and Learned Authorised Representative for the Revenue and perused the case records including the written submission and the case laws placed on record by the respective sides. The term 'intermediary' has been defined under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ediary". Sub-contracting for a service is also not an intermediary service. The supplier of main service may decide to outsource the supply of main service, either fully or partly, to one or more sub-contractors. Such sub-contractor provides the main supply, either fully or a part thereof and does not merely arrange or facilitate the main supply between the principal supplier and his customers and therefore clearly not an intermediary. Who is an 'intermediary' and what is 'intermediary service' has been clarified by Central Board of Indirect Taxes and Customs (C.B.I. & C.) vide Guidance Note dated 20-6-2012 and under GST regime also a clarification has been issued by C.B.I. & C. on 20-9-2021 both of which are in line with the discus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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