https://www.taxtmi.com/caselaws?id=444210 The appeal against the demand of Service Tax on commission paid to overseas agents under reverse charge mechanism was allowed. The Bench found the appellants eligible for exemption under Business Auxiliary Service, considering their activities as manufacturer-exporters in the textile industry. It was noted that the commission paid to overseas agents was incidental to textile goods processing, entitling them to the exemption. The appellants' contention of a revenue-neutral situation, eligibility for Cenvat credit, and lack of intent to evade payment supported the decision to set aside the service tax demand, with no penalty imposed. en-us Tue, 10 Oct 2023 00:00:00 +0530 Tue, 10 Oct 2023 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444210 The appeal against the demand of Service Tax on commission paid to overseas agents under reverse charge mechanism was allowed. The Bench found the appellants eligible for exemption under Business Auxiliary Service, considering their activities as manufacturer-exporters in the textile industry. It was noted that the commission paid to overseas agents was incidental to textile goods processing, entitling them to the exemption. The appellants' contention of a revenue-neutral situation, eligibility for Cenvat credit, and lack of intent to evade payment supported the decision to set aside the service tax demand, with no penalty imposed. Case-Laws Service Tax Tue, 10 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444210