2024 (7) TMI 618

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....tification No. 27/2012-CE(NT) dated 18.06.2012 on the ground that the services were not exported as place of provision of service was in India in view of provision contained in Rule, 9(c) Place of Provision of Service Rules, 2012 (POPS) and the confirmation of the said order of denial of refund by the Commissioner (Appeals) is assailed by the Assessee-Appellant in the present appeal. 2. Facts of the case, in brief, is that Appellant was registered with Service Tax Department for providing "Business Auxiliary Services". It is an incorporated company that was providing sale-promotion and sale-support service to its associated company namely M/s. Chevron Phillips Chemicals Global FZE ("CPC Global") established in Dubai. It was receiving consi....

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....centage of actual value of goods sold was paid to the Appellant in foreign exchange, the said mechanism cannot be considered as criteria for determining principal-agency relationship, for which the order passed by the Commissioner (Appeals) is also unsustainable in law and facts. 4. Learned Authorised Representative for the Respondent- Department Mr. Badhe Piyush Barasu argued in support of the reasoning and rationality of the order passed by the Commissioner (Appeals), while admitting that in their appeal filed against the order passed by this Tribunal in Appellant's own case was not admitted for hearing by the Hon'ble Supreme Court of India. 5. We have perused the case record, the agreement copy, relevant provisions contained in POP....

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.... agent commission on all sale of products was only payable to the Appellant for providing services (promotional and other sale services as noted in para 3) by the principle namely CPC Global but in carrying forward the same observations made in the previous order the subsequent order was passed with reference to those two paragraphs noted in Lubrizol Advanced Materials India Pvt. Ltd. and R.S. Granite Machine Tools Pvt. Ltd. respectively by holding that consideration received by the Appellant from M/s CPC Global as a service provider was not directly linked with the sale of products by the selling company in India. However para 5 of the agreement, which was reproduced by learned Commissioner (Appeals) in his order at para 7.3.5 would go to ....

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....ge of commission on sale of those products. If it is necessary that CPC Global pay a commission or other compensation to third parties in connection with any sales of Products in the Territory. Agent's commission as computed on Exhibit B shall be reduced by the amount of such payment; provided, however, in recognition of Agent's responsibilities and activities in coordinating sales of the Products through such third parties, Agent's commission shall not be reduced to less than one-quarter of one percent (0.25%) computed on the basis specified above." (underlined to emphasise) 6. Further both are treated as independent entities only in view of general Clause prescribed under 10.1 that explicitly puts the Appellant in the nature of 'indep....