ARISHT SPINNING MILLS Vs. CCE

JUDGEMENT

(1.) THE applicant filed these applications for waiver of pre -deposit of tax and penalty. The relevant facts of the case in brief are that the applicants are manufacturers of excisable goods and the goods manufactured were exported by them. The applicant made payments to foreign based commission agents for procuring orders of the exported goods. The Revenue raised the demand of tax on the payment of commission to commission agents.

(2.) THE learned Advocate submits that the Tribunal in the case of Foster Wheeler Energy Ltd v. CCE Vadodara reported in 2007 -TIOL -785 -CESTAT held that services rendered outside India are made liable to service tax in view of Section 66A which has been inserted in the Service Tax provisions of Finance Act, 2006 with effect from 18.4.2006. He also relied upon the decision of the Tribunal in the case of Dimensional Stones v. CCE Jaipur reported in 2007 -TIOL -1247 -CESTAT -DEL.

(3.) THE learned DR submits that the adjudicating authority observed the service was rendered in India and therefore, demand of tax is correct.