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        Customs, DGFT & SEZ

        New Service Tax Cases

        May 13, 2008

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        1

        Service Tax - 2008 - TMI - 3947 - HIGH COURT PUNJAB & HARYANA

         

        Services of consignment agents - held that services of commission agent are included in the definition of 'business auxiliary service' from 1-7-2003 and mere procuring or having orders for the principal by an agent on payment of commission basis would not amount to providing services as "clearing and forwarding agent" - engage in any of the activities connected with clearing and forwarding operations directly or indirectly - no substantial question of law arises - appeal is dismissed

         

         

        2

        Service Tax - 2008 - TMI - 3946 - HIGH COURT RAJASTHAN

         

        Who is liable in case of Import of services - Disputed period is before 1.1.05 - Tribunal has rightly found that at the time when the tax was paid, the liability could not be fastened on the recipient of the services, the liability was ordered to be fastened on reciepient only since 1.1.2005. Thus, we do not find any error, or substantial question of law involved - appeal is, therefore, dismissed

        Business auxiliary service classification confirms commission agents fall within its scope, not clearing and forwarding services. Services of commission agents are treated as business auxiliary service from 1-7-2003; mere procurement of orders for a principal on commission does not amount to providing services as a clearing and forwarding agent, which requires engagement in clearing and forwarding operations. Separately, recipient-based liability for import of services applies only from 1-1-2005; for periods before that date liability could not be fastened on the recipient.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Business auxiliary service classification confirms commission agents fall within its scope, not clearing and forwarding services.

                                Services of commission agents are treated as business auxiliary service from 1-7-2003; mere procurement of orders for a principal on commission does not amount to providing services as a clearing and forwarding agent, which requires engagement in clearing and forwarding operations. Separately, recipient-based liability for import of services applies only from 1-1-2005; for periods before that date liability could not be fastened on the recipient.





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                                ActsIncome Tax
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