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2023 (12) TMI 483 - CESTAT CHENNAIImport of service or not - reverse charge mechanism - Pure agent - service received from M/s. Bestinet, Malaysia - Appellants are authorised by Malaysian Government to conduct screening tests and bio metric registration of the persons seeking employment in Malaysia and upload the results in the web portal – Foreign Workers Centralised Management Scheme (FWCMS) maintained by M/s. Bestinet SDN BHD, Malaysia - suppression of facts or not - invocation of extended period in terms of Section 73(1) of the Finance act, 1994. HELD THAT:- The appellant was collecting Rs.2000/- for each prospective employee who are the service receivers which is inclusive of US$ 30 which is paid to M/s. Bestinet upon raising of periodical invoices on the appellant. The total demand confirmed of Service Tax during the period from September 2014 to June 2017 worked out to Rs.36,36,856/- after giving exemption for the amounts collected towards diagnostic / medical screening tests. The Service Tax liability was computed on this US$ 30 which is the fees collected by the appellant for biometric registration of the candidates on FWCMS. The appellant acted as an agent of the Bestinet in collecting the fees of US$ 30 which was paid on periodical basis to M/s. Bestinet. The invoices raised by the appellant did not indicate collection of any other amount over and above US$ 30 payable by each foreign worker. In view of the above findings, the nature of services rendered by the appellant were in the nature of a pure agent as far as the fees for biometric registration is concerned. The amount alleged to have been collected by the appellant over and above US$ 30 is only towards screening test conducted by the appellant which was already held to be exempt in the impugned Order-in-Original dated 30.06.2021 under Notification No. 25/2012-ST dated 20.06.2012. As such, the demand of Rs.36,36,856/- collected by the appellant as fees for biometric registration of foreign workers who are the ultimate service recipients and which was paid to M/s. Bestinet, cannot be sustained. As the appellant succeeds on merits there is no need to discuss about the invocation of extended period. The impugned order is ordered to be set aside - Appeal allowed.
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