TaxTMI 
TaxTMI 
2018 (8) TMI 819
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....ssued to the appellant demanding service tax of Rs. 1,67,100/- with interest thereon for the period 18.04.2006 to 07.07.2009. Pursuant to adjudication, the original authority vide an order dt. 4.5.2011 confirmed demand of Rs. 90,683/- with interest and imposed penalties under Section 77 & 78 of the Finance Act,1994. In appeal, the Commissioner (Appeals) vide impugned order dt. 24.2.2012 upheld the order of original authority. Hence this appeal. 2. Today when the matter came up for hearing, on behalf of the appellant, Ld. Consultant Shri R. Balagopal submits that as per Notification No.14/2004-ST dt. 10.09.2004, when Business Auxiliary Service is rendered towards textile processing, the same is exempted from payment of service tax. Ld. Co....
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.... Service under Notification No.14/2004-ST dt. 10.9.2004 and whether assessees are liable for penalty as contended by Revenue. Prima facie, we find that there is no dispute on the fact that the appellants are manufacturer-exporters and they manufacture textile made ups and export to overseas. They have engaged overseas agents and paid commission for procurement of export orders and the commission agency service is covered under the Business Auxiliary Service. The appellants claimed the exemption under Notification No.14/2004-ST dt. 10.9.2004 as applicable during the relevant period before appellate authority and he rejected their plea on the ground that the said exemption is applicable to the input services related to textile processing. The....
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....extile manufacturer and exporters. The word "textile processing" referred in the notification is to be understood in a broader sense. The dictionary meaning of "textile processing" means sequence of operations or changes undergone and the definition of "textile" includes fabrics, fibre, yarn suitable for weaving into fabric. The exemption of service tax under BAS was allowed in relation to four industries namely agriculture, printing, textile processing and education. Therefore, the appellant being textile industry, it is covered under the category "textile processing" in the notification. 6.3 Commission paid to the overseas agents is in respect of service provided by that agent to the appellant to export its goods and thereby sale....
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.... is further pertinent to mention that appellants are manufacturer-exporters. Service tax if any payable under reverse charge is permissible to be availed as cenvat credit and that may be refundable under Notification No.41/2007 unless otherwise deniable by law. The provision made in Central Excise Rules and Cenvat Credit Rules ensures that tax is not added to the cost of export so that Indian exporter can compete with overseas market. The Hon'ble Supreme Court in CCE Vs Coca Cola India (Pvt) Ltd. - 2007 (213) ELT 490 dismissed Revenue's appeal holding that when an assessee is eligible to Modvat credit, the situation becomes revenue-neutral. In the present case, service tax demanded entitles the appellants to the credit thereof and c....