TMI Blog2019 (8) TMI 1508X X X X Extracts X X X X X X X X Extracts X X X X ..... ency Service - period from 18.04.2006 - HELD THAT:- The foreign buyers raised debit notes in respect of the cost of the free samples, which was reimbursed by the respondent. The Commissioner has analyzed the provisions of the Finance Act, 1994 relating to taxation of Advertising Agency Service and held that reimbursement of cost of free samples, was not taxable under the said category. It would appear from the grounds (iii) of appeal that the Revenue now seeks to tax the amount under Business Auxiliary Service upon the basis that the non-resident was the agent of the respondent and distributed the samples in order to promote the product. Revenue has sought to change the classification from Advertising Agency Service to Business A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 927/2019 - Dated:- 9-8-2019 - HON BLE SHRI P. K. CHOUDHARY, JUDICIAL MEMBER AND HON BLE SHRI BIJAY KUMAR, TECHNICAL MEMBER Shri K. Chowdhury, Authorized Representative for the Appellant Shri J.P. Khaitan, Sr. Advocate for the Respondent ORDER PER P.K.CHOUDHARY : The instant appeal is preferred by the Revenue against Order-in- Original No.03/Commr./ST/Kol/2009-10 dated 15.06.2009, dropping the proceeding initiated under show-cause notice dated 04.04.2008. The period in dispute is from October,2002 to 18.04.2006 and from 18.04.2006 to 31.03.2007. In the review order dated 12.09.2010, it is observed that the appeal is directed against dropping of the demand only on respect of following claims : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Board has also issued Instruction F.No.276/8/2009-CX.8A dated 26.09.2011 accepting that the reverse charge mechanism became effective from 18.04.2006. In such a scenario, it is not necessary to go into the question as to whether the payments aggregating to ₹ 1,15,44,169/-, were on account of any service or taxable service. The Revenue cannot argue in respect of the aforesaid amount on the ground that no proceeding can be initiated claiming service tax on reverse charge basis for the period prior to 18.04.2006, when Section 66A of the Finance Act, 1994, was enacted and the reverse charge mechanism became effective. 4. The remaining amount for the period from 18.04.2006 is ₹ 37,47,412/- in respect of which tax was demanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s free to their customers as samples and raised debit notes upon the respondents for reimbursement of such free samples. Such reimbursement by the respondent in effect amounted to providing discount to the customers, who had already paid for the goods purchased from the respondents. It is vehemently argued by the Ld.Sr.Advocate that no service tax can be levied/charged, on the discount, allowed to the customers, who had purchased the respondent s goods. We find that the overseas customers merely sold the goods purchased from the respondent and gave free samples to their customers as part of their selling effort. The overseas customers did not thereby render any service to the respondent and the question of any consideration for any service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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