TaxTMI 
TaxTMI 
2024 (10) TMI 1827
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....1.02.2006 with M/s. Salesforce.com Singapore Pte., Ltd. The Appellant is providing the services as per the service agreement entered by the appellant with the overseas customer. During the course of audit of the records of appellant, it is observed that appellant failed to pay service tax for the taxable service provided in India to M/s. Salesforce Singapore Pvt. Ltd. Adjudication authority as per the impugned orders confirmed the demand of service tax with interest and also imposed penalties. Aggrieved by said orders, present appeals are filed before the Tribunal. 3. Appeal No. ST/20613/2018 is for the period from July 2012 to March 2015 and ST/20709/2021 is for the period from April 2015 to June 2017. Since the issue involved in both the appeals is common and are for different periods they are taken up for hearing and disposal by this order. 4. The learned counsel during the hearing draws our attention to the allegation in the show cause notice (SCN) that the services rendered by the appellant to their overseas entity is in the nature of an 'intermediary' in as much as they are engaged in the activity of linking up the main service provider located in Singapore to t....
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....also draws our attention to the service agreement entered by M/s. Sales force.com, Singapore Pte Ltd., (SFDC, Singapore) and the Appellant, where it is specifically stated that the SFDC, Singapore and Appellant desires to enter into an arrangement whereby Appellant will provide services in support of SFDC, Singapore business operations within its designated territory as defined in Exhibit 'A' subject to limitation provided by the agreement. The Learned Counsel also draws our attention to Clause 2 of the agreement where the responsibilities and limitations of the Appellant were specified as per which Appellant shall assist SFDC, Singapore in marketing the products and services, shall educate potential customers regarding the use of the product through advertisement, if required by SFDC, Singapore, Appellant shall provide consultation services including technical, systems, the Appellant shall collect, assess and compile market information for SFDC with localization services and any other services in support of the activities of the SFDC, Singapore. However, the Appellant shall not have the authority to conclude sales contract in the name or on behalf of the SFDC, Singapore. A....
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....tegory; (3) that class or category is not exhausted by the enumeration; (4) the general terms follow the enumeration; and (5) there is no indication of a different legislative intent. Reference in this connection may be made to Amar Chandra Chakraborty v. Collector of Excise and Housing Board of Haryana v. Haryana Housing Board Employees Union". 10. The Ld. Counsel also draws our attention to the judgment of the Hon'ble Supreme Court in the matter of M/s. Mohanlal Vs. Kodiyers (1979 (2) SCC 616), wherein it is held that:- "19. In legal phraseology, every person who acts for another is not an agent. A domestic servant renders to his master a personal service; a person may till another's field or tend his flocks or work in his shop or factory or mine or may be employed upon his roads or ways; one may act for another in aiding in the performance of his legal or contractual obligations to third persons, as when he serves a public carrier, warehouse-man or innkeeper in performance of the latter's duties to the public. In none of these capacities he is an "agent" within the above meaning as he is not acting for another in dealings w....
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....) issued by the Central Board of Indirect Taxes. The said circular makes it clear that the concept of intermediary services contemplates minimum of three parties. The said Circular explains as under: "By definition, an intermediary is someone who arranges or facilitates the supplies of goods or services or securities between two or more persons. It is thus a natural corollary that the arrangement requires a minimum of three parties, two of them transacting in the supply of goods or services or securities (the main supply) and one arranging or facilitating (the ancillary supply) the said main supply. An activity between only two parties can, therefore, NOT be considered as an intermediary service. An intermediary essentially "arranges or facilitates" another supply (the "main supply") between two or more other persons and, does not himself provide the main supply." "18. Admittedly, in the present case, the petitioner is rendering the Market Research Services directly to OHMI, Japan. Therefore, insofar as providing Market Research Services is concerned, the petitioner cannot be held to be an intermediary". 13. The Learned Counsel further submits that though the a....
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.... April 13, 2023 in ST/89802/2018 xv. Excelpoint Systems (India) Pvt. Ltd. Vs. Commissioner of Service Tax, Bangalore - 2022 (3) TMI 1258 - CESTAT Bangalore xvi. Micron Semiconductor India Pvt. Ltd. Vs. Commissioner of Central Tax, Bengaluru, Final Order No. 20255- 20256/2023 dated January 24, 2023 in ST/20472- 20473/2021 xvii. JFE Steel India Pvt. Ltd. Vs. Commissioner of CGST Gurugram - 2020 (3) TMI 1342-CESTAT Chandigarh xviii. M/s Raaga Associates Pvt. Ltd. Vs. Commissioner of CE & ST, Faridabad - 2022 (1) TMI 1125 - CESTAT Chandigarh xix. Principal Commissioner of CGST New Delhi Vs. Ernst & Young Ltd. - 2023-VIL-167-CESTAT-DEL-ST xx. Kusum Ingots & Alloys Ltd. Vs. Union of India - 2004 (4) TMI 342 - SC xxi. Radhasoami Satsang, Saomi Bagh, Agra Vs. Commissioner of Income Tax -(1992) 193 ITR 321 (SC) xxii. CIT Vs. Excel Industries - (2013) 358 ITR 295 SC xxiii. Principal Commissioner of Central Excise-I Vs. Advinus Therapeutics Ltd. - 2016-TIOL-3138-CESTAT-MUM. 15. Learned counsel further submits that extended period of limitation cannot be invoked as there is no suppression of material fact or ev....
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.... the work he performs for the principal." 18. Learned Counsel further submitted that similar view was held by this Tribunal in the matter of M/s. Micron Semi Conductors in Service tax Appeal Nos. 20472-20473/2021 vide Final Order No. 20255- 20256 of 2023 dated 24.01.2023, wherein it is held that considering the reasoning given by the Tribunal in understanding the meaning and scope of 'intermediary service' in the matter of M/s. Black Berry India Pvt. Ltd., the service rendered by the appellant cannot fall under the definition of 'intermediary service'. 19. Learned Authorised Representative (AR) for the Revenue reiterated the findings in the impugned orders and also draws our attention to the obligations in the agreement and accordingly appellant shall maintain a competent and fully staffed organization adequate to discharge its duties and responsibilities under this Agreement; shall respond promptly to all inquiries and requests by customers or potential customers in the territory for information relating to the Products and Services; and shall take necessary or useful actions and steps to actively support SFDC Singapore in recovering the amounts invoiced to customers within ....