2022 (10) TMI 693

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....ellant and set aside the Order-in-ST/ Original No. 50/Refund/CGST/Div-East-1/2017-18 passed by the Adjudicating Authority. 2. The issue to be decided is whether the services provided by the respondent-assessee falls within the category of "Intermediary Services". The facts related to filing of the appeal are that the respondent is registered under the category of "Business Auxillary Service". They had filed three refund claims the details are as under: Period Amount (I) October 2016 - December 2016 2,47,90,605/- (II) January 2017 - March 2017 2,99,13,277/- (III) April 2017 - June 2017   3,75,64,681/- Total refund claim amounting to Rs 9,22,68,563/- for the period October, 2016 to June, 2017 was sought by t....

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....the said decision is extracted as under:- " xxx xxx xxx 8. The sole allegation of the Revenue is that the respondent provided intermediary service, therefore the benefit of export services is not available to them. 9. We find that CBEC by Guidance Note on 20.6.2012 has the clarified the meaning of intermediary as under:- "Para 5.9.6 what are intermediary services? Generally, an "intermediary" is a person who arranges or facilitates a supply of goods, or a provision of service, or both, between persons, without material alteration or further processing. Thus, an intermediary is involved with two supplies at any one time: The supply between the principal and the third party; and The sup....

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....ve Guidance Note of CBEC dt.20.6.2012 and definition of intermediary, the following conclusion has drawn:- (a) An intermediary arranges or facilities a provision of a 'main service' between two more persons; (b) An intermediary is involved with two supplies at any one time (i) the supply between the principal and the third party; and (ii) the supply of his own service (agency service) to his principal, for which a fee or commission is usually charged; (c) An intermediary cannot influence the nature or value of service, the supply of which he facilitates on behalf of his principal, although the principal may authorize to negotiate a different price; (d) The consideration for an intermediary is separately i....

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....pment supply order's including liaison/coordination', so the liaison/coordination is also equivalent to solicitation and is more near to intermediary nature that the act of solicitation. Each mandate where there are two or more than two companies are involved would not automatically by termed as intermediary merely on the ground of involvement of two or more companies. To be intermediary, the criteria laid down has been discussed hereinabove. We hold that the respondent is not intermediary. 14. We further take note of the fact that the activity of the appellant is routine back office process out sourcings activities and are completely based on instructions/guidelines provided by ENSIL/AEs in this regard. The Revenue has not produce....