TaxTMI 
TaxTMI 
2025 (6) TMI 191
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.... Act, 1994. 2. Briefly stated, the appellant is engaged in manufacturing the gaur gum powder for export and were availing CENVET credit duty and taxes paid on inputs, Capital goods and inputs services. During audit of the records, it was noticed that the appellant had availed the services of the agent/intermediatry for getting the export orders and for which they had remitted an amount of Rs 75,43,666 to the agents located outside India during the period from April, 2010 to September, 2014 and in terms of Section 66(A) of the Act, they were liable to deposit service tax under the Reverse Charge Mechanism, which they failed to pay. It was also noticed that the appellant had taken a gowdown on rent from the Director of the company and paid R....
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...., 2002 (as input or as a output rules of tax due to export) as the commission was related to export of goods. The tax so demanded was also refundable under notification no.41/2007-ST dated 7.10.2007. On the second issue of demand on rent paid on godowns to the Director of the company was also argued to be legally not sustainable as the gowdowns were rented out by the Director in his individual capacity and not as Director of the Company. The learned counsel also challenged the invocation of the extended period of limitation on the ground that the entire transactions were duly recorded in the books of accounts and entire payments were made through banking channels. According to him, it is merely a case of non-payment of tax under bona fide b....
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....d abroad, the place of service is the location of the appellant and therefore, the appellant is liable to pay service tax on these services under the provisions of Sections 68(2) of the Act. The appellant has taken a Godown under rent from one of the Directors of the company under 'Rental of Immovable Property Services' and are paying rent to the Director. After issuance of Notification No. 45/2012-ST dated 07.08.2012 the company was responsible for payment o service tax on any taxable services provided by its director to the company. The assessee, being a body corporate, is required to pay Service Tax on the 100% value of the rent paid to the Director under Reverse Charge Mechanism. 6. From the submission of the parties, the issue inv....
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....observed that whatever service tax is paid by the appellant, the same is refundable in terms of notification no.41/200 and, therefore, the appellant is entitled to refund claim. It was accordingly held that it is a situation of revenue neutrality and service tax cannot be demanded from the appellant. In view of the consistent stand taken by the Tribunal, we find that the demand of service tax on the amount of commission paid to the foreign agents for booking of export orders is not maintainable on the principle of revenue neutrality as in the event of charging service tax, the appellant would be entitled to Cenvat credit. Therefore, the demand on this account is not maintainable. 7. On the issue of rent paid on godowns to the Director of t....