TaxTMI 
TaxTMI 
2024 (3) TMI 755
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....inted the Appellant as Order procurement Agent. As per the Agreement between Chinese Company and Indian Railways, for the Orders procured by the Appellant Indian Railways is required to pay the commission amount to the appellant @ US $ 67 and US $ 65 based on the product imported. The Chinese Company has entered into the Agency Commission Contract with the Appellant for the wagons procured by the Indian Railways. The Railways will pay per wagon US $ 1167/US $1081 as per the grade of wagon involved. This is the net amount to be remitted by the Indian Railways to the Chinese Company. They have also directed the Indian Railways to pay US $ 67/US $65 to the agent by way of agency commission. The exchange rate of US $1 has been taken as Rs. 39.8....
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....) of Export of Service Rules, 2005. 3. They also rely on the case law of CCE, Jaipur-I Vs. National Engineering Industries Ltd.-2019 (30) G.S.T.L. 211 (Raj.). It is submitted that on identical issue, the Hon'ble High Court has taken a view that when the proceeds are received in Indian Rupees which has resulted in saving of foreign exchange, still the service should be taken as Export of Service. Accordingly, he prays that the Appeal may be allowed on merits. 4. Further, they submit that all their details were properly reflected in their Profit & Loss Account, Balance Sheet and theirs is a Public Limited Company and their Statutory Returns are in the public domain. There is no concealment of any income. As a matter of fact, the Show Cause ....
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....ng to suggest that they have acted as purchase agent on behalf of the Indian Railways. As per the details given at Para 4(iv) of the OIO (Page No. 8), it is seen that the Indian Railways is required to pay the net amount of US $ 1167/1081 to the Chinese Company. Apart from that they are required to pay US $ 67/US$65 to the Appellant on account of Chinese Commission wherein the rate of exchange has been taken as US $ 1= Rs. 39.82. Based on this rate of exchange, Indian Railways has paid the commission amount to the Appellant in Indian Rupees. 8. A harmonious reading of the Contract would clarify that when Chinese Company says it is exclusive of Agency commission, they have made it clear that they want net payment of US $ 1167/1081 from Indi....
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....n the amount paid by the Indian buyer in foreign currency to the foreign seller which is inclusive of assessee's commission the foreign seller pays the commission portion out of the price to assessee in foreign currency. Where the Indian buyer pays that portion of price which represents commission, directly to assessee in that case NEI do not get commission from seller in foreign currency but gets from the Indian buyer in Indian rupee. 17. In that view of the matter, the assessee was a party to the services which was required to be rendered for earning the foreign exchange therefore a very narrow compass put by the department is considered then no citizen in India will be benefited from the exchange of foreign currency. 18. In that vi....