CESTAT determined appellant's promotional and marketing services ...

Promotional Services to Foreign Company on Cost-Plus Basis Qualify as Export, Not Intermediary Services Under GST

March 5, 2025

Case Laws     Service Tax     AT

CESTAT determined appellant's promotional and marketing services to Air BNB Ireland qualified as export services, not intermediary services. The tribunal found no agent-principal relationship existed, as appellant operated as independent contractor on cost-plus markup basis, directly billing Air BNB Ireland. Key factors: appellant provided only main service without auxiliary services, held no direct contracts with Air BNB's customers, and subcontracting arrangements did not constitute intermediary status per CBIC circular. Revenue's failure to initiate Section 73 proceedings under Finance Act 1994 for service tax collection implicitly acknowledged export status. Tribunal directed refund of unutilized CENVAT credit, overturning original rejection.

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