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2018 (12) TMI 1537 - AT - Service TaxLevy of service tax - remuneration paid to channel partners as brokerage, commission, etc. - recipient of service - reverse charge mechanism - Held that:- The extract of a sample agreement entered into between the respondent and the ‘lead generator’ makes it amply clear that their function is limited to marketing of the product whereas an ‘insurance agent’ acts in place of the insurance company in so far as the policyholder is concerned. This is not to disclaim the scope of coverage of the service provided by ‘lead generator’ under any other head of taxable service - The transfer of burden of discharge to the service recipient within section 68 of Finance Act, 1994 is specific and limited without scope for extending beyond the few transactions listed in rule 2(d)(i) of Service Tax Rules, 1994. The Central Board of Excise and Customs, vide instruction no. 137/21/2011-ST dated 15th April 2013, has clarified, in the context of certain levies under Finance Act, 1994, which had a reference to some other laws for the purpose of definition that the scope of such indirect definitions would not extend beyond the specific content of those definitions. It is, therefore, reasonable to surmise that the claim of the Learned Authorised Representative that the Finance Act, 1994 has been aligned entirely with the Insurance Act, 1938 is too farfetched for us to place reliance upon. The service rendered by ‘lead generator’ is not that of an ‘insurance agent’ and, consequently, the commission paid by respondent to such entities are not liable to be included in the assessable value of the respondent for discharge of tax liability under Finance Act, 1994 - appeal dismissed - decided against Revenue.
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