Case Law Details
Madras Security Printers Private Limited Vs Commissioner of Service Tax (CESTAT Chennai)
Appellant, engaged in printing of security documents and papers, had paid agency commission to its foreign agents who were engaged by the appellant for procuring export orders to the appellant.
Entertaining a doubt, based on intelligence, that the appellant had not paid Service Tax on the commission paid to its foreign agents and further entertaining a doubt from the nature of transaction that the payment of commission for providing the business to the appellant was classifiable under ‘business auxiliary service’, a Show Cause Notice dated 21.10.2011 came to be issued proposing, inter alia, to demand the Service Tax on the commission paid by the appellant to its foreign agents under reverse charge basis under the category of ‘business auxiliary service’.
CESTAT held that Commission paid to the overseas agents is in respect of service provided by that agent to the appellant to export its goods and thereby sales is promoted and Appellants are entitled to the benefit of exemption Notification No. 14/2004 and not liable to the payment of service tax under reverse charge.
FULL TEXT OF THE CESTAT CHENNAI ORDER
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