TMI Blog2012 (11) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... le as Clearing and Forwarding Service - no liability on the Appellants to pay service tax on activity of this type performed entirely outside India - pre-deposit waived - ST/868/2011 - ST/S/123/2012(PB) - Dated:- 27-1-2012 - S/Shri S.S. Kang, Mathew John, JJ. REPRESENTED BY : Ms. Geetanjali Chopra and Shri A.K. Batra, Advocates, for the Appellant. Shri K.P. Singh, AR, for the Respondent. [Order per : Mathew John, Member (T)]. The Appellants are engaged in the business of manufacturing of frozen meat and exporting the same to various countries. They had engaged certain parties (hereinafter referred to as foreign agents ) in foreign countries for getting the goods cleared from the ports in those countries and delivering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of frozen buffalo meat in Malaysia. 3. That 1st party will also undertake all post shipment services and pay all the Government dues necessary for the purpose. 4. That 1st party will also follow up for export realisation from importer of frozen buffalo meat in Malaysia. ( 1st party refers to the foreign agent in Malaysia) 2. The contention of the Revenue is that since the foreign agent is responsible for following up export realisation the service is classifiable as Business Auxiliary Service which includes activities such as billing, issue or collection and recovery of cheques, payments etc. Based on such reasoning, a Show Cause Notice was issued to the Appellants demanding service tax on the payments made to thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the provisions under Section 66A of Finance Act, 1994. 5. Considered arguments on both the sides and perused the contract, we find that there is no responsibility cast on the foreign agents for promoting the sale of goods produced by the Appellants. There is no other activity mentioned in the contract which will fit into one of the entries at Sr. No. (i) to (vi) of the definition under Section 65(19). Therefore the mere fact that they are following up the payments will not prima facie make the service classifiable as Business Auxiliary Service. Prima facie, we are in agreement with the argument of the Appellants that the service is classifiable as Clearing and Forwarding Service. Then there is no liability on the Appellants to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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