TaxTMI 
TaxTMI 
2023 (8) TMI 407
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....tor of M/s DTI; the work of the appellant included canvassing for the merits of becoming an agent/ distributor of M/s DTI and to enroll new agents/ distributors. It appeared to the Department that the services rendered by the appellant to the multi level marketing company attracts service tax. Accordingly, a show-cause notice dated 13th December, 2011 was issued to the appellant; Deputy Commissioner vide order dated 13th June, 2012 confirmed the service tax of Rs.6,29,315/- along with interest and penalties; on an appeal filed by the appellant, Commissioner (Appeals) vide impugned order gave relief to the appellant from the service tax on the amounts received under the Head "Commission out of India" and sustained the rest of the deman....
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....nded period and equal penalty. He relies on the following: • Charanjeet Singh Khanuja- 2016 (41) STR 213 (Tri. Del.). • Chanda Bohara- 2018 (1) TMI 1132- CESTAT New Delhi. • Prabhjeet Kaur- 2018 (9) TMI 1146-CESTAT Chandigarh- 2018 (9) TMI 1146. • Shri Heera Lal- 2019 (4) TMI 1562-CESTAT New Delhi. • Bajarang Lal- 2019 (5) TMI 231-CESTAT New Delhi. • Shri Ramdiya and others- 2020 (2) TMI 191-CESTAT Chandigarh • Shri Bhairu Dan Karwa and others- 2016 (10) TMI 1295-CESTAT New Delhi. 4. Learned Consultant further submits that it is incorrect to tax the amounts received towards sharing of international profit as held in Charanjeet Singh Khanuja (supra)....
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.... The learned Consultant for the appellant argues that the show-cause notice is non-specific and hence, is not maintainable. We find that the Tribunal in the case of Kalpataru Power Transmission Ltd. (supra) held that: " 5.3. The demand for Service Tax under the category of "Business Auxiliary Services" has been made on the ground that Appellant employed sales commission agent, marketing agent, technical advisors for liaisoning activity with various customers and agencies, advisory or consultancy for settlement of dispute in connection with promotion of their business interest abroad. The revenue alleges that service tax ought to be paid on such expenses under the Business Auxiliary Service under reverse charge mechanism. However, w....
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.... India, and (b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India, such service shall, for the purposes of this section, be taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply : Provided that where the recipient of the service is an individual and such service received by him is otherwise than for the purpose of use in any business or commerce, the provisions of this sub-section shall not apply : Provided further that where the provider of the service has his busi....
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....blishment in that country and such establishment situated abroad as a 'separate person', will be understood to have been prescribed only to determine the provision of service whether in India or out of India. In the present matter we find that department has not disputed the facts that the payment to overseas consultant/agents/service providers was made from the overseas projects site branch/office of the Appellant and said Foreign Service providers have charged local VAT/GST/Service tax as applicable in the respective foreign countries in invoices issued by them to foreign site/project office/Branch office of Appellant. The said facts clearly established that the services have been provided by the foreign agents to the foreign site office/....
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....t that in respect of appeals filed by the Revenue, the Commissioner (Appeals) after analyzing the activities of the assessees had taken the view that the same is not covered by the definition of "Business Auxiliary Service" under Section 65(105)(zzb) read with Section 65(19) of the Finance Act, 1994. When on the issue involved in this group of cases, there were two views in the Department itself, it cannot be said that on the question as to whether the activity of the assessees was taxable under Section 65(105)(zzb) read with Section 65(19) of the Finance Act, 1994, there was no scope for doubt. As held by the Apex Court in the case of Continental Foundation Joint Venture v. CCE, Chandigarh reported in 2007 (216) E.L.T. 177 (S.C.) when ther....