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2017 (2) TMI 1149 - AT - Service TaxBusiness auxiliary services - Appellant had accrued certain benefits under foreign trade policy under the target plus scheme during the relevant period which entitled the appellant to transfer the sale benefits to any other entity by mentioning their name on the documents like invoice and shipping bills. It is the case of Revenue that appellant having received 1% of FOB value from Adani Exports Ltd, the said amount is liable to be taxed under business auxiliary services under the category of production or processing of goods on behalf of client. Held that: - Revenue wants to include the amount received by appellant under the category of production or processing of goods for or on behalf of client which we find incorrect and unsustainable, for the simple reason that there is nothing on record to show that Adani Exports Ltd., is getting the diamond jewellery manufactured by appellant; nor there is any agreement brought on record to show that Adani Exports Ltd., had in fact placed an order with the appellant for manufacturing and export of diamond jewellery. In the absence of any such evidence to indicate that Adani Exports Ltd., had availed the services of appellant for production or processing of goods, we find that the impugned order holding that appellant is producing or processing of goods on behalf of Adani Exports Ltd., is unsustainable. The appellant herein themselves cannot claim the commission for the activity undertaken by them. Appeal allowed - decided in favor of appellants.
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