ADF Foods Ltd. v. CCGST

FINANCE ACT, 1994

--Refund of service tax--Commission paid to overseas agents Eligibility of----Since Place of Provision of Service Rules, 2012 have been amended with effect from 1-10-2014, whereunder, no service tax is to be paid on the commission paid to the overseas commission agents; consequently, assessee was eligible to claim refund of service tax paid on such commission services during the relevant period. --Issue arose for consideration, as to whether assessee was entitled to refund of service tax paid on reverse charge basis during the relevant period on the value of commission paid to the overseas commission agents. Held: Place of Provision of Service Rules, 2012 have been amended with effect from 1-10-2014, whereunder, no service tax is to be paid on the commission paid to the overseas commission agents. Consequently, assessee was eligible to claim refund of service tax paid during the period October 2014 to September 2015. Therefore, refund of the amount of service tax paid and covered under the period of one year from the relevant date in terms of section 11B of Central Excise Act, 1944 was admissible to assessee, as it had reversed the credit availed of on the amount of service tax paid.