9911796707
TMI Blog2023 (4) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... o the appellant. 2.1 Entertaining a doubt, based on intelligence, that the appellant had not paid Service Tax on the commission paid to its foreign agents and further entertaining a doubt from the nature of transaction that the payment of commission for providing the business to the appellant was classifiable under 'business auxiliary service', a Show Cause Notice dated 21.10.2011 came to be issued proposing, inter alia, to demand the Service Tax on the commission paid by the appellant to its foreign agents under reverse charge basis under the category of 'business auxiliary service'. 2.2 It appears that the appellant filed a detailed reply thereby denying any liability to Service Tax on the payment of commission to its foreign agents int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai]; (iv) M/s. Maxican Exports v. Commissioner of Central Excise & Service Tax, Tiruchirappalli [2018 (8) TMI 819 - CESTAT, Chennai]; (v) M/s. Arvind A. Traders v. Commissioner of C.Ex. & S.T., Trichy [2016 (44) S.T.R. 264 (Tri. - Chennai)] (vi) M/s. Aruppukottai Sri Jayavilas Ltd. & ors. v. Commissioner of Central Excise & Service Tax, Madurai [2015 (9) TMI 732 - CESTAT, Chennai]; (vii) M/s. Sunbeam Infocomm Pvt. Ltd. v. Commissioner of C.Ex., Pune-II [2015 (37) S.T.R. 129 (Tri. - Mumbai)] 6.2 The Learned Advocate would invite our attention to the discussion in M/s. Texyard International (supra) wherein a more or less similar issue was considered in the light of Notification No. 14/2004 (supra). He would refer to paragraph 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants claimed the exemption under Notification No. 14/2004-S.T., dated 10-9-2004 as applicable during the relevant period before appellate authority and he rejected their plea on the ground that the said exemption is applicable to the input services related to textile processing. The period involved in all these appeals relates to post 18-4-2006. It is relevant to reproduce the Notification No. 14/2004-S.T., dated 10-9-2004 as under :- "Service tax exemption to specified services in relation to Business auxiliary service In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try, it is covered under the category "textile processing" in the notification. 6.3 Commission paid to the overseas agents is in respect of service provided by that agent to the appellant to export its goods and thereby sales is promoted. That is an activity incidental or auxiliary to processing of textile goods and covered by Business Auxiliary Service and Clause (d) of the notification extracted above covers the case of the appellant bringing the export promotion activity abroad as incidental and auxiliary to the activity of production as is meant by Section 65(19) of Finance Act, 1994. Appellants are accordingly entitled to the benefit of exemption Notification No. 14/2004 and not liable to the payment of service tax under reverse char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther orders relied upon by the Learned Advocate. 9.1 In the Order-in-Original, it has been held by the Adjudicating Authority that the foreign agents of the appellant did not render any taxable service classifiable under Notification No. 14/2004 (supra), after observing that the said foreign agents only arranged / booked orders but did not involve in producing any input or input service. Notification No. 14/2004 (supra), which is reproduced in the earlier paragraphs [part of the order in the case of M/s. Texyard International (supra)] exempts taxable service provided to a client by any person in relation to business auxiliary service insofar as the same related to: - (a) procurement of goods or services, which are inputs for the client; ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
