𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗖𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗳𝗼𝗿 𝗘𝘅𝗽𝗼𝗿𝘁 𝗼𝗳 𝗕𝗼𝗼𝗸𝘀 📢 The Tribunal held: "The appellant’s subsidiary company, acting as a consignment agent by clearing and forwarding educational books in the USA, does not provide a taxable service under 'Business Auxiliary Services.'"

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Enbee Education Centre Pvt Limited 𝗜𝘀𝘀𝘂𝗲: Whether service tax is payable on the commission received by the appellant for services performed by the subsidiary in the USA? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant exported educational books to its USA subsidiary, which forwarded them to customers in the USA. The appellant received 85% of the sale price as commission.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled: The subsidiary’s role was that of a consignment agent (clearing and forwarding goods), not a commission agent (procurement of orders), based on Board Circular No. 59/8/2003-ST. Thus, service tax liability under “Business Auxiliary Services” does not apply. The appeal was allowed, setting aside the service tax demand.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Enbee Education Centre Pvt Limited vs. Commissioner of Central Excise & ST, Vadodara-i 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 10583 of 2014-DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 03 November 2023 📜 This ruling clarifies that consignment agents involved in clearing and forwarding activities for export are not subject to service tax under Business Auxiliary Services.