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TMI Blog2015 (9) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... 88/ 2010 ORDER Per R. Periasami All the appeals are taken up together as the issue are of common nature. 2. The issue relates to the demand of service tax under reverse charge mechanism. The appellants at S.No.1 to 14 and 22 & 23are manufacturer of textile yarn and exported the same. Service tax has been demanded on the commission paid to the overseas agents for procurement of orders. In the case of S.No.15 to 21 service tax has been demanded on the commission paid to the overseas agents under reverse charge mechanism when the appellants exported textile made-ups. The Adjudicating authority issued show-cause notices and confirmed the demand and also imposed penalty and same was upheld by Commissioner (Appeals) under respective Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of finished goods.The Revenue filed appeal against setting aside of penalties by Commissioner (Appeals). The main issue in the present appeals is whether appellant-assessees are eligible to the benefit of exemption of service tax under Business Auxiliary Service under Notification No.14/2004-ST dt.10.9.2004 and whether assessees are liable for penalty as contended by Revenue. Prima facie, we find that there is no dispute on the fact that the appellants are manufacturer-exporters and they manufacture textile made ups and export to overseas.They have engaged overseas agents and paid commission for procurement of export orders and the commission agency service is covered under the Business Auxiliary Service.The appellants claimed the exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was exempted during the relevant period for the services provided under Business Auxiliary Service if it relates to agriculture, printing, textile processing or education. The appellants are Textile manufacturer and exporters. The word textile processing referred in the notification is to be understood in a broader sense. The dictionary meaning of textile processing means sequence of operations or changes undergone and the definition of textile includes fabrics, fibre, yarn suitable for weaving into fabric. The exemption of service tax under BAS was allowed in relation to four industries namely agriculture, printing, textile processing and education. Therefore, the appellant being textile industry, it is covered under the category textile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abroad wherever possible shall be exempted from service tax. Therefore, the demand is also hit by limitation and the extended period cannot be invoked. 8. It is further pertinent to mention that appellants are manufacturer-exporters. Service tax if any payable under reverse charge is permissible to be availed as cenvat credit and that may be refundable under Notification No.41/2007 unless otherwise deniable by law. The provision made in Central Excise Rules and Cenvat Credit Rules ensures that tax is not added to the cost of export so that Indian exporter can compete with overseas market. The Hon'ble Supreme Court in CCE Vs Coca Cola India (Pvt) Ltd. - 2007 (213) ELT 490 dismissed Revenue's appeal holding that when an assessee is e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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