Service tax not payable as mere use of word commission doesn’t mean seller has paid commission

Commissioner of Service Tax Vs Sidh Designers Pvt Ltd (CESTAT Delhi) CESTAT Delhi held that mere use of the word “commission” in the clause dealing with terms of payment would not mean that “commission” was paid by the seller. The goods were sold on principal to principal basis and payment to buyer was expenses incurred by overseas buyer and not commission. Hence, service tax not payable. Facts- The issue involved in all the appeals is as to whether the amount paid by the respondents to overseas companies situated in Dubai and shown as “commission” in the shipping documents in rela...