Case Law Details
Arcelor Mittal Projects India Pvt Ltd Vs Commissioner of Service Tax (CESTAT Mumbai)
The recent decision by the Central Excise and Service Tax Appellate Tribunal (CESTAT) Mumbai in the case of Arcelor Mittal Projects India Pvt. Ltd. vs. Commissioner of Service Tax has significant implications in the realm of service taxation. At the heart of the matter was whether procuring sales orders for products manufactured by steel mills outside India for customers within India constituted an export of service. CESTAT Mumbai ultimately quashed the service tax demand, and this article delves into the details of the case and its implications.
1. Background and Key Facts:
Arcelor Mittal Projects India Pvt. Ltd. is a wholly-owned subsidiary of Arcelor Mittal Stainless International, Paris (AMSI). AMSI appointed the appellant as a sub-agent, with the primary role of seeking and procuring sales orders for products manufactured by steel mills located outside India but intended for customers within India. The process involved negotiations between foreign mills and Indian customers, culminating in customers placing purchase orders directly with foreign mills. AMSI received a commission for facilitating these transactions, a part of which was shared with the appellant in convertible foreign exchange.
2. Service Tax Demand and Appellant’s Belief:
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