TMI Blog2015 (12) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... n reverse charge mechanism. - Held that:- Perusal of the MOU between the parties, prima facie, throws light there is absence of the principal and agent relationship. The shipping document also showed that there was a sale of the goods from India which was in the course of export. No such document came to our notice to appreciate the Revenues contention at this stage. - Prima facie, looking to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er abroad is compensated to that extent. It is an understanding between the parties that whenever discount is to be provided that is to be reimbursed by the appellant since the margin is already fixed which otherwise would result in deduction of the margin. Similarly, whenever expenses are incurred for the promotional sale, those expenses are also reimbursed by the appellant. On such facts, Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra vires. 2. On the other hand Revenues contention is that the party abroad being an agent of the appellant the service provided by that agent was compensated by way of payment from India. The compensation for service being provided that shall be taxed and liable on reverse charge mechanism. 3. Heard both sides and perused the records. 4. Perusal of the MOU between the parties, prima faci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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