The case involved a dispute regarding the classification of ...

Dispute over service classification for export resolved in favor of appellant by Tribunal. Circular clarified 3 parties needed for intermediary services.

Case Laws     Service Tax

August 8, 2024

The case involved a dispute regarding the classification of services as intermediary services for export during 2009-10 to 2013-14. The Tribunal found that the transactions lacked the involvement of three parties, essential for intermediary services. The service was primarily rendered by the overseas party to foreign universities, with the appellant assisting Indian students. Circular No.159/15/2021-GST clarified the requirement of three parties for intermediary services. The Tribunal noted that the appellant and overseas party provided similar services, raising doubts on the applicability of the circular to service tax. Due to the appeal's success on merits, other issues, including extended limitation period and penalties, were deemed irrelevant. The appeal was allowed by the CESTAT (Appellate Tribunal).

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