AI OCR 
TaxTMI 
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2026 (5) TMI 3
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....keting Support Agreement and another is Technical Support Agreement relating to pre-sales and post-sales activities. They were discharging service tax on the Technical Support Agreement; however, not paid service tax on pre-sales activities i.e. Marketing Service during the period from July 2012 to March 2014. Consequently, show-cause notices dated 01.10.2014 and 23.10.2015 were issued to the appellant alleging that the services provided by them to their foreign company being in the nature of intermediary services; therefore, cannot be considered to fall under the scope of 'Export of Service'; accordingly, the consideration received from the overseas company is liable to service tax, hence proposed for recovery of service tax of Rs. 3,12,91,469/- for the period July 2014 to March 2014 and Rs.75,51,780/- for the period April 2014 to September 2014, totalling to Rs.3,88,43,249/- with interest and penalty. On adjudication, the demands were confirmed with interest and penalty. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant has submitted that the appellant is in the business of providing marketing support service(pre-sales) and technical support....
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....of the Tribunal: i. Chevron Philips Chemicals India Pvt. Ltd. CCGST&CE[2021(53) GSTL 268 (Tri. Mumbai)] ii. Chevron Philips Chemicals India Pvt. Ltd. CCGST&CE [2024(15) Centax 102 (Tri. Mumbai)] iii. CCT&CE Vs. Chevron Philips Chemicals India Pvt. Ltd. [2024(388) ELT 135 (SC)] iv. Microsoft India (R&D) Pvt. Ltd. Vs. CCT [(2025) 26 Centax 97 (Tri. Bang.)] v. CCT, GST Commissionerate Vs. Informatica Business Solutions Pvt. Ltd. [(2025) 26 Centax 167 (Tri. Bang.)] 4. Learned AR for the Revenue has reiterated the findings of the learned Commissioner. 5. Heard both sides and perused the records. 6. The short question involved in the present appeal for consideration is whether the services provided by the appellant to the foreign agency M/s. Cadence Design Systems (Ireland) Ltd., Ireland is in the nature of intermediary service and falls outside the scope of POPS Rules, 2012. 7. Undisputed facts of the case are that the appellant had entered into Marketing Support Services Agreement with Cadence Ireland. Article II of the said Agreement reads as follows:- ARTICLE II SUBJECT MATTER OF THE CONTRACT 1. Authorization. Cadence India is aut....
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....n supplying customers with information on the Company's Products. 7. Power to Bind the Company in Legal transactions. Cadence India may not represent the Company in any way in legal transactions or put it under any legal obligation. It shall avoid doing anything that might create the prima facia impression that it has authority to represent the Company in any legal transaction. 8. Act in Lawful Manner. In all cases, Cadence India agrees to conduct its service activities in a lawful manner consistent with the highest standards of fair trade, fair competition, and business ethics, and shall cause all of its agents and employees to do the same. 9. Terms and Conditions. The Services rendered by Cadence India to the Company shall be subject to the following condition: • All orders placed by the potential customers shall be directly received by and be in the name of the Company. The acceptance or rejection of orders shall not be done by Cadence India, nor does Cadence India have any authority to, accept or reject any such orders on behalf of the Company. 8. A plain reading of the Article II of the Agreement makes it clear that the appellant ....
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.... scope of said definition. Secondly, it is contended that even after 1-10-2014, also the appellant never acted as an 'intermediary' as is clear from the agreement between the appellant and the overseas company. The definition of 'Intermediary' under Rule2(f) of the POPS Rules, 2012 reads as under : Before amendment "(f) 'Intermediary" means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the 'main' service) or a supply of goods, between two or more persons, but does not include a person who provides the main service on his account." After amendment w.e.f. 1-10-2014 "(f) 'Intermediary" means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the 'main' service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goods on his account." 16. There is merit in the contention of the appellant that since 'goods' was not covered under the scope of definition of 'intermediary', therefore, for the pe....
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....also, the appellant cannot be called as an 'intermediary'. On a simple reading of the agreement analyzed as above, it is clear that the appellants are appointed by their overseas counterpart CPC Global for sales promotion of the goods for their client in the defined territory. The appellant has no role in fixation of price nor they negotiate in any manner between CPC Global and their clients relating to sales promotion of the goods sold. Therefore, in my view, the appellant cannot be called as an intermediary, consequently, fall outside the amended definition of 'intermediary' under Rule 2(f) and Rule 9 of the POPS Rules, 2012. Similar view has been expressed by the Tribunal in the case of Lubrizol Advance Materials (supra) and R.S. Granite Machine (supra). This Tribunal in the case of Lubrizol Advance Materials has held as under :- "6. I find that the Learned Commissioner (Appeals) has denied the benefit of export with effect from 1-10-2014 under the Place of Provision of Services Rules, 2012, holding that the appellant had facilitated supply of goods between its foreign counterpart and processing of goods and thus, it should be considered as an intermediary. On perusal o....