CESTAT hold service tax cannot be retained in a pure sale transaction

Bayer supplied hybrid seeds to West Bengal State Seed Corporation on an outright sale basis and separately paid commission to an agent for procuring the seeds. 

Although Service Tax was wrongly charged on the agent's commission, the Department denied Bayer's refund on the ground that the Service Tax burden had been passed on through the sale price. CESTAT found no such passing on: the price related to the sale of seeds, and any reference to taxes in the sale price could only relate to VAT, not Service Tax. 

The refund with interest, was therefore allowed.