TaxTMI 
TaxTMI 
2015 (2) TMI 241
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.... from various companies and passed them on to the foreign company; on receiving such orders, the foreign companies deliver the goods to Indian companies and paid a commission to the appellant which was in foreign currency. CERA audit party entertained a view that the appellant is liable to discharge service tax liability under "Business Auxiliary Services" (BAS) on such amount received by them as commission from foreign parties as they were promoting, gathering market information, which would fall under the category of promotion or marketing of goods/services. Such CERA audit enquiry, the appellant gave a detailed reply. The said explanation was not accepted by the audit party and a show-cause notice dated 19/03/2009 was issued to the appel....
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....d., Vs. CST, New Delhi ST/866/2008 & ST/828/2010 09-11-2011 d) Gap International Sourcing (India) Pvt. Ltd., Vs. CST- Appeal No. 819 of 2008 28-02-2014 e) CST, Mumbai-III Vs. SGS India Pvt. Ltd. 2014 (34) S.T.R. 554 (Bom.) f) Blue Star Ltd., Vs. CST, Final Order No. A/1611/14/CSTB/C-1 in Appeal No. ST/74/08-Mum 24-09-2014 It is his submission that in view of the above, the impugned order be set aside. 4. The learned departmental representative on the other hand would draw our attention to the findings recorded in the order-in-original and submit that the assessee has not disputed that they are procuring orders from the Indian companies and passing them on to the overseas manufacturers. It is his submission that the appellant ....
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....izing of the imports. His duty as is ascertained from the agreement, indicates that he is supposed to procure the orders and pass it on to the overseas manufacturers; on receipt of such orders, the overseas manufacturers executes the same on his own and the consideration for such supplies is directly paid to the overseas manufacturers by the person who has placed the order. The entire transaction in our considered opinion seems to be of only procurement of orders and the rendering of services, if any, by the appellant is towards the foreign or overseas manufacturers. In our view, this activity though culminates in supplies to Indian Company, cannot be considered as services provided in India. We are fortified in our view by the ratio of the....
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....is covered by the provisions of Export of Service Rules and are not liable to Service Tax. iii) The principal of equivalence between the taxation of goods and taxation of services, as laid down by the Hon'ble Supreme Court in the case of All India Federation of Tax Practitioners [2007 (7) STR 625 (SC) as also the principals of destination based consumption tax where in the context of Constitutional Authority of levy of Service Tax on certain services and the issue of Export of Service in terms of Export of Service Rules was not the subject matter of said decision. The Export Service Rules, 2005, being destination based consumption tax are in accordance with the declaration of law by the Hon'ble Supreme Court. iv) Inasmuch as t....
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....f equivalence between the taxation of goods and taxation of service had been laid down by the Apex Court in the case of Association of Leasing & Financial Service Companies vs. Union of India (supra) and All India Federation of Tax Practitioners vs. Union of India (supra) in the context of constitutional validity of levy of service tax on certain services. This principle does not imply that service tax should be levied and collected in exactly the same manner as the levy and collection of tax on goods or that export of service should be understood in exactly the same manner in which the export of goods is understood. In fact the question as to what constitutes the export or import of service was neither raised nor discussed in the abovement....