Pre-Section 66A service tax on overseas commission was not payable for foreign agent services rendered abroad.

Overseas commission paid to a foreign-based agent for services rendered before insertion of Section 66A of the Finance Act, 1994 was not liable to service tax. The pre-Section 66A position did not extend service tax to services received from outside India, and the Tribunal's view that the commission was not exigible was supported by the Supreme Court in Laghu Udyog Bharati and by the High Court's earlier ruling in Bhandari Hosiery Exports Ltd. The revenue's challenge therefore failed, and the commission remained outside the service tax net for the relevant period.

---

---

Issues: Whether service tax was leviable on overseas commission paid to a foreign-based commission agent for services rendered before insertion of Section 66A of the Finance Act, 1994.

Analysis: The service was rendered prior to the insertion of Section 66A, which later provided for taxability of services received from outside India. In that pre-Section 66A period, the Tribunal's view that the commission amount was not exigible to service tax was supported by the Supreme Court decision in Laghu Udyog Bharati and by the earlier decision of this Court in Bhandari Hosiery Exports Ltd.

Conclusion: The overseas commission was not liable to service tax for the period in question, and the challenge by the revenue failed.

---