TMI Blog2019 (7) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... inspection report prepared by the appellant, and relied upon in the show cause notice, were also retained by the appellant in their records indicating that these are not the material form of the services rendered. The decision of the Tribunal in M/S. AT CO. VERSUS C.S.T. DELHI [2016 (12) TMI 929 - CESTAT NEW DELHI ] , has laid down the principle that mere inspection, or certification, which does not have to fall back on any expertise of scientific or technical knowledge would not find coverage within this taxable service. We also take note that the role of the appellant in the entire transaction is to act as the agent of the overseas entity for the limited purpose of approving the shipments on the basis of certain specifications ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents, submits that appellant is a buying agent for various customers based abroad and, in that capacity, grants final approval for the articles that are shipped by various suppliers directly to the overseas customers. Pointing out that the total consideration received from the Indian suppliers is not attributable to the value of the goods, for which payments were being made by the overseas customers directly to the suppliers, the splitting of this umbrella service into three taxable services is assailed. According to him, section 65A of Finance Act, 1994 requires the application of the dominant service to be ascertained and in accordance with which, the liability may at best be fastened as provider of support service of business and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of service by the appellant. 3. On the issue of taxability on reverse charge basis , it would appear that the contentions of the appellant had not been taken into consideration by the adjudicating authority. It is very clear that during the period of dispute, no tax could have been levied on reverse charge basis as section 66A of Finance Act, 1994 which came into effect from 18th April 2006 and it has been held by the Hon ble Supreme Court in Union of India v. Indian National Ship Owners Association [2010 (17) STR J57 (SC)] that the legislative mechanism for tax on reverse charge did not exist prior to that. As there is no finding on the claim of the appellant that this amount, sought to be levied to tax, arose from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certification . Placing reliance on the decision of the Tribunal in AT Company v. Commissioner of Service Tax, Delhi [2017 (49) STR 574 (Tri. Delhi)] and on the decision of the Tribunal in Antony Garages Private Limited v. Commissioner of Central Excise, Raigad [2015 (38) STR 49 (Tri.- Mumbai)] that the tax was intended to cover providers of such services as involved expert testing and certification linked to some statutory or safety provision. 6. Learned Authorized Representative contends that the certificates issued by the appellant are nothing but test certificates , as envisaged in the taxable service, and that the original authority had rendered a clear finding that the invoices raised by the appellant on the supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overseas entity for the limited purpose of approving the shipments on the basis of certain specifications indicated by the overseas customers. We also take note that, as buying agent, the activities appellant spans a wide gamut of which testing and inspection may at best, be a part. 9. Considering the above, we find that the levy of tax on an activity that does not fall within the scope of section 65(105)(zzh) of Finance Act, 1994 cannot be approved. We also take note that the taxability of the other two services, as decided by us, requires computation. In order to do so, we set aside the impugned order and remand the matter back to the original authority to decide on the merits of the demand taking note of our adjurements on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
