2018 (3) TMI 502

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.... ORDER Per: Bench The appellants are engaged in leather manufacturing, trading and agency. They are registered with the Service Tax Department for providing 'Business Auxiliary Services'. M/s. Wega International Ltd, Hongkong, a foreign commission agent appointed leather exporters / manufacturers to place orders for them. The appellants were appointed to co-ordinate and expedite the shipments ....

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....the demand without appreciating the correct facts. The appellant has not provided services to the shippers / manufacturers. They have provided services to M/s.Wega International, Hongkong. This does not involve taxable services, since these are export of services. He adverted to the letter dt.10.11.2004 issued by M/s.Wega to appellant and also the agreement of terms for payment of the consideratio....

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....co-ordinating the shipments and for liaison work. M/s.Wega has offered to pay 1.8% of the invoice value as remuneration for the services. The appellants have explained this in their reply to Show Cause Notice. Though the amount is paid by the local manufacturers to the appellants, this amount belongs to M/s.Wega as the local manufacturers pays only 3.2% and retain the balance to be paid to appella....