2025 (7) TMI 350

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.... has modified the order passed by the original authority and has confirmed the demand of service tax to the extent of Rs.49,307/- along with interest amounting to Rs.55,512/- and also imposed a penalty of Rs.1000/- under Section 77 and an equal penalty of Rs.49,307/- under Section 78 of the Finance Act, 1994. 2. Briefly stated facts of the present case are that the appellant is engaged in the manufacture and export of footwear. During the audit of the records of the appellant, it was noticed that during financial year 2005-06 & 2006-07, the appellant had paid an amount of Rs.5,72,027/- in foreign currency to various foreign based persons for service of advertisement/publicity and exhibition/display in relation to their activities in Indi....

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....volved in the present case was not taxability of services received from commission agents located outside India, but was taxability of 'Business Exhibition Service' received outside India; therefore, the impugned order is based on erroneous assumption of facts and is liable to be set aside. He further submits that the Commissioner (Appeals) has failed to appreciate that demand pertaining to commission agents had already been dropped by the original authority as being prior to introduction of Section 66A of the Finance Act w.e.f. 18.04.2006 and the only demand remaining for the period April 2006 to January 2007 pertained to 'Business Exhibition Service' and not to foreign based commission agents. He further submits that as per the Circular d....