Sunrise Immigration Consultants Private Limited Vs CCE & ST (CESTAT Chandigarh)
Sunrise Immigration Consultants Pvt. Ltd. (“the appellant”) challenged the confirmation of a service tax demand of Rs. 89,34,080/- along with interest and penalties imposed by the Revenue for the period 2009-10 to 2013-14. The dispute related to two categories of services offered by the appellant:
1. Visa Facilitation Services: Assisting individuals in visa processing.
2. Referral Services: Referring students to foreign universities/colleges and assisting investors in securing loans from foreign banks.
While the appellant accepted the tax liability for visa facilitation services, they contested the service tax demand on referral services, claiming these did not constitute “intermediary services” and qualified as export of service.
Facts of the Case:
Prior to July 2012, services provided by the appellant were exempt under the Export of Service Rules and Circular No. 136/6/2011-ST dated 20.04.2011. Post 01.07.2012, with the introduction of the negative list regime, visa facilitation services became taxable, a point the appellant did not dispute. However, the appellant argued that referral services to foreign banks and universities, which involved connecting students or investors to their clients and earning commission upon successful transactions, were not taxable.
The Revenue issued a Show Cause Notice for both service types. The adjudicating authority confirmed the service tax demand for the post-July 2012 period, partly rejecting the appellant’s claim for exemption for referral services.
