Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1179 - AT - Service TaxReverse Charge Mechanism - commission received by the appellant from the appellant’s service recipients located outside India - place of provision rules - export of services in terms of 6A of the Service Tax Rules, 1994 - whether the provision of service which was exempted from service tax by virtue of being an export service could become taxable after 09.10.2014? - Held that:- It is not the case of the Revenue that the appellant arranges or facilitates other services as well, in addition to the above, to its ‘Principals’ nor is the case of the Revenue that the appellant had suppressed the provision of any other service. The Revenue has also nowhere disputed the above service rendered by the appellant, ie., procuring/obtaining orders for its Principals located outside the taxable territory, for which the commission is paid by its Principals as also the fact of that obtaining orders from the Indian customers is the main and the only service rendered by the appellant. Rule 3 is the general Rule whereas, Rule 9 is specific and also covers ‘intermediary service’. Therefore, if the service of the appellant herein is held to be that of intermediary services, then Rule 9 will automatically apply. If not, Rule 3 will apply - Rule 2 (f) excludes the services of intermediary if the person whose main service is arranging or facilitating a provision of service, which also stands automatically excluded from the purview of Rule 9 and thus would fall under Rule 3. The facts of the case as analysed elsewhere in this order, make it clear that obtaining/procuring order for its foreign Principals is the main service rendered by the appellant and consequently, rigors Rule 9 vis-à-vis Rule 2 (f) are not applicable - Rule 3 of POPS Rules would only apply and therefore the appellant cannot be fastened with tax liability. Appeal allowed - decided in favor of appellant.
|