Export of Service: Board issued a clarification vide Circular dt. 24.01.2009 where it has been clarified that it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India: Matter remanded.

Banking & Other Financial Services: Export of Services: Exemption under Notification No. 21/2003 dated 20/11/2003 available when the consideration for the services rendered was received in foreign currency: For the period prior to 20/11/2003, Board's circular dated 24/05/2003 clarifies that no service tax would be leviable on export of services for which consideration is received in convertible foreign exchange.

Export of Service Rules: Service recipient is the foreign telecom service provider and not the subscriber of the foreign telecom service provider who is roaming in India: Appellant not eligible for rebate.

Export of Service: Only activity of the applicants is to procure order from their foreign manufacturer of the goods who is located outside India. Therefore, the service recipient is located outside India and the service is covered under Export of Service Rules.

Export of Service: Services provided to foreign service receiver through transmission of signals in India: Appellants have head office in Nashik, payment received in Nashik office: Appellants to produce evidence to co-relate the payment received in foreign convertible currency: Matter remanded.

Export: Services used for export: CHA Service: Goods were exported and when export documents are presented to the Customs office, then that is the place of removal as per Section 5 of C.E. Act: Appeal allowed.

Export of Service: Demand: Stay: The applicants are performing activity of promoting the business of Alcatel, Germany and receiving Commission in foreign exchange: Stay granted.

Export of Service: Refund to be filed within one year from the date of export and not from date of payment of service tax: Notification being part of the statute has to be strictly followed. 

Export of Services: Stay: Since the secondary services ultimately gets consumed/merged with the services that are being exported no service tax would be leviable on such secondary services. Stay granted.

Stay: Export of Services: STP units providing services to foreign company for maintaining their host servers for operating CRS : Prima facie case made out : Total waiver granted.

Service Tax: Refund: Remand: Primarily, the order of the Commissioner (Appeals) has been passed on the ground that specific discrepancies noted were not reconciled by the appellants. The order of the Commissioner (Appeals) is set aside and matter remanded to him for fresh consideration.(Para 6). The appeal is allowed by way of remand. (Para 7). 

Service Tax: Cenvat credit on inputs services: Notification No. 5/2006-CE NT dated 14.03.2006: Remand by Commissioner (Appeals): The impugned orders did not remit the dispute to be decided by the original authority. The Commissioner (Appeals) applied his mind and found that the respondents were entitled to refund claim on merits. He had also sustained the order of the lower authority rejecting part of the claim as barred by limitation.(Para 3). There is no infirmity in the impugned order and reject the appeals filed by the Revenue.(Para 4)

Service Tax: Banking and Financial Services: Money Transfers: Export of Services: Remand: The show cause notice in paragraph 7 proceeds on the ground that the value of services received by the appellant is in India rupees, while it is the claim of the appellant otherwise. Since the evidence of the amount so received in foreign exchange was not produced before the Adjudicating Authority, the Adjudicating Authority came to a conclusion that this service is not export of services. In view of this, remit back the matter to the Adjudicating Authority to reconsider the issue afresh after following the principles of natural justice. The impugned order is set aside and appeal is allowed by way of remand. (para 5)

Export of Service: Even though service utilized in India, since provided to person abroad: tax not leviable as the same is exempted.

Export of Services: Refund of service tax paid: Only exporter entitled to claim refund.

Service Tax: Business Auxiliary Services: Taxable event: Demand: As regards the marketing and sales services rendered in India in respect of products manufactured and exported by a foreign client, the CBEC vide Circular No.111/05/09-ST dated 24.2.2009 had clarified that such services had to be treated as export since the beneficiary of such services was based abroad.(Para 5). The impugned Business Auxiliary Services have to be treated as exports and the impugned demand denying the benefit of export to those services involved is not sustainable.

Maintenance and Repair Services: Taxable event: In the instant case, MRS involved were performed entirely in India. Moreover, such services were also delivered in India. Therefore, the MRS involved do not qualify for benefit of services exported. Accordingly, demand relatable to MRS and the applicable interest sustainable.(Para 7.1).
 

Export of Services: Stay: Matter already decided adverse to the appellants, waiver from payment of interest granted. Entire tax ordered to be deposited as pre deposit.

Stay: Prima facie case not made out regarding providing export of services : Waiver partly granted.

Export of Service: Orders booked for goods manufactured by subsidiary company situated in Singapore is Export of Service.

Business Auxiliary Service: Export of services abroad is exempted.

Market Research Services: Activity of analyzing market research reports coming from abroad. Prima facie, amounts to rendition of Market Research Services.

Service Tax: Business Auxiliary Service: Activity of promotion of sales of computers and peripherals' of M/s IBM, USA during the period from April 2007 to September 2007: Receipt of commission from IBM, USA: Export of services: As per the relevant rules governing export of service the following conditions were to be satisfied to treat the impugned services as export during the material period. (i) service should be provided in relation to business or commerce; (ii) service recipient to be situated outside India; (iii) consideration to be received in convertible foreign exchange; and (iv) service to be provided from India and used outside India. The appellants satisfied first three conditions. The appellants undertook to answer inbound and outbound calls relating to its customers wherein they would answer their queries. Additionally, the appellants maintained the Finance and Accounts related services and provided data processing services to companies outside India. The services were provided by the appellants for the benefit of the client's business outside India. Therefore they also satisfied the fourth condition. They relied on CBEC Circular No. 111/05/2009-ST dated 24.2.2009 The Circular had clarified Rule 3 (1) (iii) of the Export of Services Rules 2005. Call centers engaged by foreign companies attended to calls from customers or prospective customers from all around the world including from India. The Circular clarified that for such services, the location of the service recipient was relevant and not the place of performance of services. The Circular went on to clarify that these services would qualify to be export of service because the benefit of such service was being accrued outside India, i.e. promotion of business was of a foreign company situated outside India. Relying on various case law, it is highlighted that the Circular of the Board was binding on the adjudicating authority. Therefore prima facie the appellants are not liable to pay service tax and interest thereon and penalty imposed on them. (Para 4,7).

Stay granted.

Service Tax: Exemption under Notf. 6/99 S.T.: Scope: Applicants rendered services in India , to foreign parties. The benefit of exemption in terms of Notification 6/99 which was withdrawn in 2003, was subsequently clarified by a Board circular to the effect that in the case of export services, there could be no levy of service tax. Applicants have made out a strong prima facie case for waiver in the light of Tribunal's stay order No. S/13/2008/C- II dated 5.12.2007 in the case of SGS India Pvt. Ltd. As regards the smaller amount, pre-deposit is ordered without entering into the arena of merits of this demand.(Para 1,2).

Appeal partially allowed.