AI Drafter 
TaxTMI 
TaxTMI 
2026 (4) TMI 2
X X X X Extracts X X X X
X X X X Extracts X X X X
....gned order] passed by the Additional Director General [ADG] Director General of GST Intelligence [DGGST] in which he decided the proposals made in the Show Cause Notice dated 11.10.2018 [SCN] issued to the appellant by the ADG covering the period from October 2015 to June, 2017. 2. We have heard Shri Tarun Gulati, learned senior counsel for the appellant and Shri C. Dhanasekaran, learned special counsel for the Revenue and perused the records. 3. The appellant, a subsidiary of Li & Fung Private Limited, Hong Kong [Li & Fung, Hong Kong] had provided certain services to Li & Fung, Hong Kong and received consideration for the services. For this purpose it had entered into an agreement dated 13.02.2007 with Li & Fung, Hong Kong. The case ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... SECTION 65B. Interpretations.- In this Chapter, unless the context otherwise requires,- (51) "taxable service" means any service on which service tax is leviable under section 66B; 5. Section 66B reads as follows: SECTION 66B. Charge of service tax on and after Finance Act, 2012.- There shall be levied a tax (hereinafter referred to as the service tax) at the rate of fourteen percent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. 6. Thus, after 2012, service tax could be levied only if the services were rendered in the taxable territo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ply of goods, between two or more persons, but does not include a person who provides the main service on his account; ..... 3. Place of provision generally.- The place of provision of a service shall be the location of the recipient of service: Provided that in case of services other than online information and database access or retrieval services where the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service. ........ 9. Place of provision of specified services.- The place of provision of following services shall be the location of the service provider:- (a) Services provi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Kong had entered into agreements with its clients- various companies located in abroad- to help them source products from various countries including India. 10. Thus, there was an agreement between the appellant and Li& Fung, Hong Kong and other agreements between Li & Fung, Hong Kong and its clients (companies located abroad). 11. Li & Fung, Hong Kong is in the business of facilitating supply of goods. The appellant provided assistance to Li & Fung Hong Kong in its operations in India. Thus, the nature of service rendered by the appellant to Li & Fung, Hong Kong was not an intermediary service but was business support service as per Rule 2(f) of the POPS Rules. There was no lis between the appellant and the clients of Li &Fung, Hong....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for sourcing of goods, namely towels from Trident Limited Ludhiana from overseas buyers, BELK USA. The appellant was predominantly engaged in the business of sourcing agent on behalf of international clients which constitutes a single business segment. 15. He relied on the following recital of the agreement dated 13 February 2007 entered into between the appellant and the Li & Fung, Hong Kong. "Whereas- (1) The company and/or its affiliated companies (the group) are engaged in the business of buying agent services for customers located in Hong Kong and worldwide-" 16. We have perused the contract between the appellant and the Li & Fung, Hong Kong in the appeal book. This agreement does mention that the nature of busi....