No Service Tax on Export Commission Without Direct Nexus: CESTAT Ahmedabad

Akshita Exports Vs Commissioner of C.E. & S.T (CESTAT Ahmedabad) No Service tax on export commission, as no direct contractual nexus with foreign agent: CESTAT Ahmedabad Summary: Akshita Exports, an Indian exporter, faced a service tax demand from the Commissioner of C.E. & S.T., Surat-I, concerning commissions deducted from their export invoices between 2008-2009 and 2011-2012. The Respondent argued that these commissions, which the Appellant stated were discounts to foreign buyers, constituted “Business Auxiliary Services” and were taxable under a reverse charge mechanism...