2014 (9) TMI 303

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....d upon the appellant under Sections 76, 77 & 78 of Finance Act, 1994. 2. Shri Willingdon Christian (Advocate) appearing on behalf of the appellant argued that the issue involved is regarding commission allowed in the invoices which is to be paid to an unidentified overseas agent through the buyer of the exported goods and that according to the Revenue the same is chargeable to Service Tax under Business Auxiliary Service under Section 65 (105)(zzb) of Finance Act, 1994 under reverse charge mechanism. It was his case that appellant is not liable to pay any Service Tax as they have not received any services in India from any foreign agent. That such services, if any, are provided to the buyers of the exported goods and the payments to such....

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....onal Service Tax authorities. It was strongly argued by the ld.A.R. that value of commissions are deducted from the invoices which means that the amount is paid to the foreign agent directly through their buyer. It was also his case that the declaration made in the invoices cannot be considered as a 'discount' because appellant has also availed export incentives on these commissions under DGFT Policy circulars on revenue neutrality. Ld. A.R. argued that refund of Service Tax paid under Notification No.41/2007-ST, dt.06.10.2007 is admissible only after payment of Service Tax under reverse charge and that too subject to fulfilling the conditions specified in the notification as discussed by Commissioner in Para 2.3 and 2.4 of the OIO dt.29.11....