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2021 (6) TMI 953 - AT - Service TaxValuation - Business Auxiliary Services - services received from foreign commission agents - CBEC circular no. 11/2009-ST dated 23/11/2009 - benefit of N/N. 18/2009-ST dated 07.07.2009 - HELD THAT:- The appellant was engaged in receiving services of documentation and registration from a foreign entity. The said services do not make the foreign entity a ‘Commission Agent’ in terms of the above definition. Therefore, the very foundation of the allegation that service provider is ‘Commission Agent’ is misplaced in far as the first issue is concerned. It is seen that even Order in appeal in para 6.3 practically reiterates the findings of the Order in original. The argument that the activity undertaken by an entity abroad for the purpose of documents and registration before Foreign Regulatory Authority can be terms as activity of Commission Agent is misplaced. Consequently, demand under 4 ST/12282/2018 the heading of ‘Business Auxiliary Services’ cannot be sustained and the same is set aside. The impugned notice instead of granting the benefit of exemption of service tax to the extent of 1% of the free on board value of export goods, grants the exemption to service tax on the 1% of free on board value of export goods to the Commission. It is seen that the notification is very clear. The exemption is granted to “Service Tax” to the extent of the 1% of the free on board value of the export goods. The same has been amply clarified by the CBEC circular no. 11/2009-ST dated 23/11/2009 in para 3. Demand set aside - appeal allowed - decided in favor of appellant.
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