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2023 (11) TMI 898 - AT - Service TaxClassification of services - intermediary services or not - export of service or not - place of provision of services - extended period of limitation - penalties - HELD THAT:- It is an admitted fact that remuneration for the services rendered to the foreign client is computed on the basis of FOB value of the garments exported and that itself would not make the appellant an intermediary. All these services were rendered to the foreign client on principal-to-principal basis. Selection of vendors or making of the garments by these vendors are incidental services for procurement goods and as per the direction of the foreign client, who is the recipient of the services provided by the appellant. Thus, the appellant is the service provider and the overseas buyer is the service recipient and there is no oral or written agreement between the appellant and the vendors/exporters of garments. Also, the appellant had not received any consideration for the services provided in relation to export of goods from the vendors in India. The appellant does not satisfy the conditions to be an ‘intermediary’ for his services and as such, the impugned order 08.07.2019 cannot sustain and is required to be set aside. Extended period of limitation - penalties - HELD THAT:- Since the services of the appellant are not to be categorized as intermediary services, it is opined that there is no need to discuss regarding the invocation of extended period or imposition of penalties. Appeal allowed.
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