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TMI Blog2021 (6) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... and potassium persulphate. For this purpose they are required to take registration from European Regulatory Authorities namely European Food Safety Authority and European Chemicals Agency. For obtaining the said registration the appellant availed services of two foreign entities. These foreign entities were required to file declarations and documents on behalf of appellants for the said registration before the foreign authorities. For these services the foreign entities raised invoices on the appellant for which payment was made by the appellant. 3. The appellant had also availed services of a Commission agent located outside India to act on behalf of the appellant for causing sale of goods by the appellant. The appellant claimed the exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself. Learned Counsel argued that the Commissioner (A) has wrongly held that the activity undertaken for registration of appellant before the Foreign Authority was the activity of a 'Commission agent' and therefore covered under the definition of 'Business Auxiliary Services'. He argued that the activity undertaken by the foreign entity that helped them obtain registration was not that of 'Commission Agent' and they do not fall under that category of definition by stretch of imagination. He also relied on the decision of Tribunal in the case of Alchon Parenterals vs C.Ex. 2017 (3) G.S.T.L. 195 to assert that the activity of obtaining registration number does not fall under the definition of 'Business Auxiliary Services'. 4.1 On the second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 'Business Auxiliary Services' as Commission Agent. Commission Agent is defined under section 65 (19) as follows: "(a) 'commission agent' means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person.- (i) Deals with goods or services or documents of title to such goods or services; or (ii) Collects payment of sale price of such goods or services; or (iii) Guarantees for collection of payment for such goods or services; or (iv) Undertakes any activities relating to such sale or purchase of such goods or services; (v) Undertakes any activities relating to such sale or purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him. (1)The exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill or bill of export, as the case may be. (2) The exemption shall be limited to one per cent of the free on board value of export goods for which the said service has been used. (3) The exemption shall not be available on the export of canalised item, project export, or export financed under lines of credit extended by Government of India or EXIM Bank, or export made by Indian partner in a company with equity participation in an overseas joint venture or wholly owned subsidiary. &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the export goods. The same has been amply clarified by the CBEC circular no. 11/2009-ST dated 23/11/2009 in para 3. The circular observes as follows: "3. The current rate of service tax being ten per cent and the maximum allowable limit of foreign agency commission being ten percent of FOB, one percent of the FOB value of export goods is the maximum exemption of service tax. To settle all doubts to rest, for the purpose of service tax refund, maximum allowable foreign agency commission on export goods continues to be at the pre-budget level of ten percent of the fob value of export goods till further changes are notified." 6.5 In view of above, there is no merit in the impugned order on the second issue also. Consequently, the dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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