Appellant provided 'Intermediary' services classifiable as ...

Taxability of commission earned by 'Intermediary' from foreign service recipients debated: Assessee claimed export, Department viewed domestic service.

Case Laws     Service Tax

November 27, 2024

Appellant provided 'Intermediary' services classifiable as business auxiliary services within taxable territory to foreign recipients. Service Tax returns showed activity as "Export of Service" with no Service Tax paid on commission earned from foreign service recipients for July 2012 to September 2015. Department viewed appellant as provider of 'Intermediary' services classified under business auxiliary services within India's taxable territory to various Schott group companies located outside India. Appellant contended similar demand was raised and dropped by department for March 2005 to September 2008, with no further demand after October 2008. Tribunal remanded matter for fresh consideration, directing Adjudicating Authority to give specific finding on applicability of extended period of limitation, as all facts were not available during initial adjudication. Tribunal relied on its own decision in SNQS International Socks case, endorsed by Supreme Court, favoring assessee on similar issue.

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