TMI Blog2017 (9) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... al authority is that the LC margin retained by the appellant should be considered in respect of local vendors also, is not supported by facts or law. Services rendered to the local vendors - Held that: - It is not a simple commission agent work of promotion of the product of the vendor. Though they were registering with the department under BAS and paid service tax under such category with effect from 01.05.2006, tax liability paid after 01.05.2006 is rightly to be appropriated under BSS. This is not being contested. However, for the period prior to 01.05.2006 no tax liability will arise and same is not paid by them. The services rendered by the appellants are for tax liability under the category of BSS with effect from 01.05.2006. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Act, 1994. 2.1 The Ld. Counsel contesting the findings of the lower authority submitted that details of services rendered by the appellant is not in dispute. The application of tax entry suitable for such services is in dispute. He drew our attention to the decision of the Tribunal in the case of one of their group company involved in identical set of activities viz., Fifth Avenue Vs. Commissioner 2009 (15) STR 387 (Tri.-Chen.). He submitted that the Tribunal after elaborately examining the nature of activities and contract, held that the appellants were liable to service tax under the category of Business Support Services (BSS) in terms of Section 65 (104c) of Finance Act, 1994 and not under BAS. Accordingly the demand for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Hon ble Supreme Court. 2.4 Regarding Annexure-D, the Ld. Counsel submitted that the service rendered are typically covered under BSS and taxable only with effect from 01.05.2006. Even otherwise, these services are rendered to the foreign based buyers of Indian garment manufacturers and the consideration which is sought to be taxed under Annexure-D is LC margin, the nature of which was explained by the bank. In their letter dated 05.10.2007, Bank of India Overseas Branch, stated as below: Letter Ref.No. COSB:EXP:SN:212, dated 05.10.2007 from Bank of India Overseas Branch: Sub: Service Tax Investigation against M/s. Fifth Avenue Sourcing Pvt. Ltd., Chennai Our Ref.: 8025FBC06000900, Dated 09.10.2006. We acknow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , East Coast Clothing Co. Ltd. Tirupur. (b) Invoice No. 05/9-9-2006 for Euro 4765.20 (c) Bill of Lading No. 701061400825 dated 16-9-2006 (d) Covering Schedule from Union Bank of India, Chennai Overseas Br. forwarding the export documents drawn by East Coast Clothing Pt. Ltd. to us. (f) Invoice No. 05/9-9-2006 for Euro 5513.59 drawn by Fifth Avenue Sourcing Pvt. Ltd. (g) Letter from Fifth Avenue Sourcing submitting the export documents to us. (h) Our letter dated 9.10.2006 to LC issuing Bank, Deutsche Bank, Dusseldorf, presenting the documents drawn on their LC No. 0030001798101 (i) Payment advice received from our Paris Br. dated 16.10.2006 (j) Credit Advice dated 9.10.2006 for ₹ 36210.00 being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he original authority relying on the decision of the Tribunal with reference to Fifth Avenue a group company of the appellant, the Ld. AR submitted that the Revenue had preferred an appeal against the said order which is admitted by the Hon ble Supreme Court and pending decision. However, no stay has been granted by the Apex Court. He submitted that the services examined in Annexure-B are basically towards commission received from local vendors and should be classified under BAS as promotion of business activity. The classification claimed under BSS by the appellant is not tenable. 3. We have heard both sides and perused the appeal records. 4.1 The first point is regarding classification of services rendered by the appellant with resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der BSS. This is not being contested. However, for the period prior to 01.05.2006 no tax liability will arise and same is not paid by them. 4.3 Regarding the commission paid to the foreign based agents to get business for the appellants, the appellants admitted that they are liable to pay service tax on reverse charge basis with effect from 18.04.2006. We note that in terms of the Hon ble Bombay High Court decision in the case of Indian Shipo-owners Association (supra) no tax liability on reverse charge basis will arise prior to 18.04.2006. 4.4 In view of the above discussion and analysis, we find that the services rendered by the appellants are for tax liability under the category of BSS with effect from 01.05.2006. In so far as thes ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
