2009 (11) TMI 244 - AT - Service Tax

Foreign Commission Agent Services Pre-2006 Not Taxable; CESTAT Chennai Decision

The Appellate Tribunal CESTAT, Chennai upheld that services of a foreign-based commission agent before 18-4-2006 are not taxable under 'Business Auxiliary ... Services received from outside India- The Commissioner (Appeals) has accepted the contention of the assessee herein that service of foreign based commission agent rendered prior to 18-4-2006 is not taxable under the category of ‘Business Auxiliary Services’ which includes commission agent. In the light of the decision of Indian National Shipowners Association v. Union of India 2009 -TMI - 32747 - BOMBAY HIGH COURT, held that- setting aside the demand on the ground that the service in question was rendered prior to 18-4-2006 and reject the appeal. The Appellate Tribunal CESTAT, Chennai upheld the decision that services of foreign-based commission agent rendered before 18-4-2006 are not taxable under 'Business Auxiliary Services'. The decision was based on precedents from Indian National Shipowners Association v. Union of India and Unitech Ltd. v. CST. The appeal was rejected.