2017 (12) TMI 1609 - AT - Service Tax

CESTAT Chennai: Service Tax Demand on Foreign Agent Commission Not Sustainable

The Appellate Tribunal CESTAT Chennai allowed three appeals related to the demand of service tax under Business Auxiliary Services (BAS) on commission ... Business Auxiliary Service - Commission paid to a foreign agents service procured by the appellants - Held that:- Tribunal in one of the same appellants case being M/s. J.P.P. Mills Pvt. Ltd. Vs. CCe, Salem [2017 (10) TMI 750 - CESTAT CHENNAI], where it was held that in as much as the services in question were related to textile processing, as the appellants had exported yarn, they would be entitled to the benefit of Notification No. 14/2004-ST dated 10.09.2004 - appeal allowed - decided in favor of appellant. Issues:Demand of service tax under BAS on commission paid to a foreign agent.The judgment by the Appellate Tribunal CESTAT Chennai addressed the issue of service tax demand under Business Auxiliary Services (BAS) on commission paid to a foreign agent. The Tribunal referred to a previous case involving textile processing and observed that the appellants, who had exported yarn, would be entitled to the benefit of Notification No. 14/2004-ST dated 10.09.2004. The Tribunal relied on judgments in similar cases to support its decision, stating that the demand beyond a certain date was not sustainable. As the issue in the present appeals was identical to the previous decision, the Tribunal set aside the impugned orders and allowed all three appeals with consequential relief to the appellants. The judgment provided a detailed analysis based on legal provisions and precedents, ultimately leading to a favorable outcome for the appellants.