TaxTMI 
TaxTMI 
2013 (8) TMI 800
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....essary details, is that appellants are marketing agent of various printing machines in India supplied by their foreign supplier viz. M/s. Toshin Kogyo Co. Ltd., of Japan. The assessee filed refund claim of Rs. 5,02,807/- on 3-11-2008 in respect of service tax paid between the period from 13-4-2006 to 9-2-2007 for the financial year 2005-06 & 2006-07 under the category of "Business Auxiliary Service" on the grounds that they are rendering their services as a commission agent to their foreign supplier viz. M/s. Toshin Kogyo Co. Ltd., of Japan for marketing their various printing machines in India and getting their payments in the form of commission in convertible foreign exchange. The assessee further claimed that they were never liable to se....
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....wn, he should have filed the refund of the same if he felt that said service tax liability does not arise. For this proposition he would rely upon the Final Order Nos. A/ 1574-1575/WZB/ AHD/2012, dated 29-10-2012 in the case of CST, Ahmedabad v. Gujarat Road Transport Corporation. 6. I have considered the submissions made at length by both sides and perused the records. 7. The facts of the case are not disputed by the Revenue inasmuch as that the appellant had received commission in convertible foreign exchange and has discharged the service tax liability on his own volition. It is also not in dispute that the business auxiliary services are covered under the Export of Services Rules, 2005. 8. On such a factual matrix, I find that the am....
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....Rules, 2005. The service rendered by the appellant was admittedly one of the business auxiliary services classified under Section 65(105)(zzb) of the Act. The features of appellant canvassed purchase orders from prospective Indian buyers for the goods supplied by the foreign companies. These purchase orders were transmitted to the foreign companies either by courier or by electronic means. The foreign companies acted upon these purchase orders and accordingly supplied the goods directly to the Indian buyers, who made the payments directly to the foreign suppliers. Upon receipt of these payments, commission was paid to the appellant by the foreign companies, in convertible foreign exchange. It is not in dispute that the requirement of the co....
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....licable to the facts of this case. Following the ratio in the case of KSH International Pvt. Ltd., I set aside the impugned order and allow the appeal filed by the appellant with consequential relief." 10. I also find that in the case of KSH International Pvt. Ltd. the Bench has held as under : "3. After hearing both sides, I find that the above denial of refund of Service tax to the appellant under Rule 5 ibid is contrary to the express provisions of law as clarified in CBEC Circular No. 111/5/2009-S.T., dated 24-2-2009. The Board, in respect of business auxiliary services falling under Rule 3(l)(iii) of the Export of Services Rules, 2005, clarified thus : "The phrase 'used outside India' is to be interpreted to mean that the benefit of ....
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....plete only when the purchase orders canvassed by the appellant in India were received by the foreign companies. These purchase orders were, admittedly, received abroad. They were also, admittedly, acted upon by the foreign companies abroad. In other words, the benefit of the service provided by the appellant accrued to the foreign companies outside India. The condition in question stood fulfilled by the appellant. The contrary view taken by the lower authorities cannot be sustained. A line of decisions cited by the learned counsel squarely supports the case of the appellant. These are Blue Star Ltd. v. CCE, Bangalore - 2008 (11) S.T.R. 23 (Tri.-Bang.), ABS India Ltd. v. CST, Bangalore - 2009 (13) S.T.R. 65 (Tri.-Bang.) and CST, Ahmedabad v.....