9911796707
TMI Blog2025 (1) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... eign clients. There are no tripartite agreement. Mumbai Bench has in case of IDEX INDIA PVT. LTD. VERSUS COMMISSIONER OF CGST, MUMBAI EAST [2023 (2) TMI 482 - CESTAT MUMBAI] has held that '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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. K. CHOUDHARY , MEMBER ( JUDICIAL ) And HON'BLE MR. SANJIV SRIVASTAVA , MEMBER ( TECHNICAL ) Shri Manish Raj , Authorized Representative for the Appellant Ms. Rupali Singh , Advocate for the Respondent ORDER SANJIV SRIVASTAVA : This appeal has been filed by Revenue and is directed against Order-in-Appeal No.NOI-EXCUS-001-APP-800-20-21, dated-16/10/2020 passed by Commissioner (Appeals) Central Goods & Service Tax, Noida. By the impugned order Commissioner (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se reply cited the agreement dated 27.09.2012 between them and SRAG, and submitted that their job was merely to identify a potential buyer for SRAG and if SRAG was able to sale the goods to the potential buyer they could earn some amount. The potential buyer dealt with the SRAG directly and it was SRAG who sold the goods and received the payment directly from the buyer. The role of the appellant was quite limited ie, identification of the buyer only. They 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 distribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian buyers of the goods are not in dispute. All the facts as stated clearly points out that there is only a by-party agreement with regards to the identification and introduction of prospective buyers for their foreign clients. We do not find any tripartite agreement. 4.4 Explanation to the content of the definition of intermediary in the education guide issued it being clearly said that there should be a tripartite agreement between the supplier, receiver 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, bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rged by an agent from his principal is referred to as "commission". Identity and title: The service provided by the intermediary on behalf of the principal is clearly identifiable. In accordance with the above guiding principles, services provided by the following persons will qualify as 'intermediary services':- (i) Travel Agent (any mode of travel) (ii) Tour Operator (iii) Commission agent for a service [an agent for buying or selling of goods is excluded] (iv) Recovery 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 wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cannot be considered as an intermediary service. An intermediary essentially arranges or facilitates the main supply between two or more persons and does not provide the main supply himself. The intermediary does not include the person who supplies such goods or services or both on his own account. Therefore there is no doubt that in cases wherein the person supplies the main supply either fully or partly, on principal to principal basis, the said supply cannot come within the ambit of "intermediary". 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
