2019 (6) TMI 630

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.....2013, to source, procure and buyall classes of goods, materials and merchandise from India for GROUPE-BEAUMONAIR. The appellants were registered with the erstwhile service tax department, under the taxable service categories of 'Business Auxiliary Services' and 'Business Support Services' etc. ii) GROUPE-BEAUMANOIR is based in France and is engaged in the business of sourcing of various products viz. ready-to-wear garments and accessories from across the globe to supply to its brands in different countries and is focused on expanding its business of sourcing from Asian sub-continent. The remuneration paid to the appellants was on a cost plus 10% basis, where the cost was defined to include the overall expenses incurred by the appellant ....

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....ppearing on behalf of the appellant submits that the services do not qualify as 'Intermediary Service', as no speaking order is passed by the authorities below. It is her submission that the appellant are assisting or facilitating only the purchase of goods for the foreign entity and they are providing assistance in identifying venders and sourcing of materials. There is no supply or service being rendered by the foreign entity to any third party in India. In the impugned order, it is held that the appellant are providing intermediary services. As GROUPE BEAUMANOIR is mere purchaser of the goods in India and are not providing any service to any other person, there is no main service itself which has been provided. Therefore, the appellant....

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..... CCE, Guntur reported in 2007 (208) ELT 321 (S.C.). Therefore, she prayed that the impugned order is to be set-aside. 4. On the other hand, the Ld. AR reiterated the findings of the impugned order. 5. Heard the parties. 6. We find that on the basis of the record placed before us, the appellant is assisting or facilitating their principal to purchase goods from India. These services are purely between the appellant their principal and no third party is involved. Moreover, the appellant is providing only the said service which is in nature of Business Support Service and Business Auxiliary Service and the said service has been specifically excluded by the CBEC Education Guide of Taxation of Services which is reproduced as under:- 5.....