https://www.taxtmi.com/caselaws?id=445331 The CESTAT Ahmedabad ruled in favor of the appellant regarding service tax liability on payments to its USA subsidiary. The appellant exported books to its subsidiary, which cleared them through customs, invoiced customers, collected payments, and retained 15% commission before transferring 85% to the appellant. The Revenue argued this constituted taxable Business Auxiliary Services under Section 66A of Finance Act, 1994. The CESTAT distinguished between commission agents and consignment agents, finding the subsidiary acted as a consignment agent handling goods movement and customs clearance rather than marketing activities. Since no marketing or promotional services were provided, the subsidiary was not a commission agent, making the service tax demand unsustainable. Appeal allowed. en-us Fri, 03 Nov 2023 00:00:00 +0530 Mon, 06 Nov 2023 10:36:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445331 The CESTAT Ahmedabad ruled in favor of the appellant regarding service tax liability on payments to its USA subsidiary. The appellant exported books to its subsidiary, which cleared them through customs, invoiced customers, collected payments, and retained 15% commission before transferring 85% to the appellant. The Revenue argued this constituted taxable Business Auxiliary Services under Section 66A of Finance Act, 1994. The CESTAT distinguished between commission agents and consignment agents, finding the subsidiary acted as a consignment agent handling goods movement and customs clearance rather than marketing activities. Since no marketing or promotional services were provided, the subsidiary was not a commission agent, making the service tax demand unsustainable. Appeal allowed. Case-Laws Service Tax Fri, 03 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445331