CESTAT Quashes Service Tax Demand on Sales Commission to Overseas Agent

Messrs Aarvee Denims & Exports Ltd Vs C.S.T.-Service Tax (CESTAT Ahmedabad) In case of sales commission to overseas commission agent under reverse charge mechanism, the extended time proviso is not invokable. Ahmedabad Bench of CESTAT has ruled in favor of Messrs Aarvee Denims & Exports Ltd, quashing a service tax demand on sales commission paid to overseas commission agents under the Reverse Charge Mechanism (RCM). The tribunal noted that the extended time proviso cannot be invoked in this case as there was no intent to evade service tax. FULL TEXT OF THE CESTAT AHMEDABAD ORDER The b...