TaxTMI 
TaxTMI 
2017 (3) TMI 793
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....he liability of the respondent to pay service tax on "Commission Income" received from affiliates in foreign country during the period 2006-07 to 2009-10. The respondents were engaged in procuring orders from Indian customers for their foreign associates. They also provided services in marketing of the products by arranging workshops, etc. The Revenue entertained a view that they are liable to service tax under the category of "Business Auxiliary Service" (BAS) as defined in Section 65(19)(i) read with Section 65(105)(zzb) of the Finance Act, 1994. The second issue is relating to reversal of proportionate cenvat credit availed on common input services, attributable to their trading activities. The Revenue held a view that in terms of Rule 6....
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....tant for the respondent submitted that the "Business Promotion Activities" undertaken by the respondent is a "Category III" service and clearly covered by the provisions of Export of Service Rules. In respect of "Business Auxiliary Service", the actual benefit is accruing to the foreign supplier of goods. As such, the services rendered are to be considered as export of service. Regarding the second issue, ld. Consultant submitted that the explanation inserted under Rule 2 (e) of the Cenvat Credit Rules, 2004 is not applicable to the period in dispute. The respondent did not provide any exempted service and as such, are not required to reverse any proportionate credit. He relied on the certain decided cases to hold that for the period upto 3....
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.... respect of services, which are rendered to the suppliers of the goods from foreign countries. The activities of export of service is not to be taxed. 9. On the second issue, we find that the Cenvat Credit Scheme is available only in respect of an assessee, who is either manufacturing dutiable final products or providing taxable output service. Admittedly, during the relevant time, the trading is not categorized as service at all. It is only in 2011, the explanation was inserted under Rule 2 (e) of CCR, 2004. The said clarification stated that "exempted service" includes "trading". Prior to that date, trading is not even considered as "exempted service". Going by this fact, it is clear that no credit is available on any "input service" attr....