TaxTMI 
TaxTMI 
2012 (11) TMI 199
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...., for the Respondent. [Order per : Mathew John, Member (T)]. - The Appellants are engaged in the business of manufacturing of frozen meat and exporting the same to various countries. They had engaged certain parties (hereinafter referred to as "foreign agents") in foreign countries for getting the goods cleared from the ports in those countries and delivering it to the consignees. The foreign a....
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....ervice, the question whether the service is imported or not is to be decided with reference to the location of the person receiving the service that is location of the Appellants which is in India and consequently they are liable to pay service tax under Section 66A. Extracts from a typical agreement are reproduced below :- "1. 1st party will be responsible to monitor all ....
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....for following up export realisation the service is classifiable as "Business Auxiliary Service" which includes activities such as "billing, issue or collection and recovery of cheques, payments" etc. Based on such reasoning, a Show Cause Notice was issued to the Appellants demanding service tax on the payments made to their foreign agents during the period 18-4-2006 to 31-3-2008. 3. The Coun....
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....d and it fits better into the definition of "Clearing and Forwarding Services". In respect of such services no liability under Section 66A will arise, if service is performed entirely outside India. 4. The Authorised Representative for Revenue submits that all the activities done by the foreign agents are for promotion of the business of Appellants and since collection of payments is one of ....