2022 (11) TMI 1093 - AT - Service Tax
Levy of service tax - services provided by the foreign based consignment agent/ distributor appellant - reverse charge mechanism - Section 66A of the Finance Act, 1994 - HELD THAT:- Appellant are engaged in exporting of fruits and foreign based consignment agent/ distributer perform various function for Appellant in foreign countries.
The general scheme of levy of service tax is that service tax is leviable on the value of taxable services from the service providers within the territory of India. Section 66A of the Act embodies an exception to this general scheme. It is an independent charging provision which provides for levy of service tax in India on services provided or to be provided by a person located outside India and received by a person located in India. Section 66A lays down that such services (specified in clause (105) of Section 65 of the Act) shall be treated as having been provided in India by the recipient. This deeming provision of Section 66A makes the Indian recipient liable to pay service tax on the services provided by the foreign service provider. This exception to the general scheme of levy of service tax is also called ‘reverse charge mechanism’.
In the instant case, it has also been contended by the assessee that the services provided by Foreign Agents do not fall within the scope of definition of C&F Agent Service and classified under Business Auxiliary Service and services of a commission agent in relation to agricultural produce were exempt under Notification No. 13/2003-ST dated 20.06.2003. But what appears from the impugned order is that this aspect was also not properly examined by the learned Commissioner. This is another reason for de novo adjudication of the case.
This matter needs to be remanded for denovo adjudication on all the issues - Appeal allowed by way of remand.