https://www.taxtmi.com/caselaws?id=750892 CESTAT Allahabad held that a registered SEZ unit providing software development services was not liable for service tax on intermediary services provided by US-based agents. The tribunal determined that agreements with overseas entities constituted intermediary services under reverse charge mechanism, but since both service provider and recipient were located outside taxable territory, the place of provision was USA. The demand covering April 2013 to June 2017 was unsustainable as it relied on non-existent statutory provisions. Additionally, revenue neutrality applied since the appellant could claim Cenvat credit for input services. The tribunal set aside the demand along with interest and penalty, allowing the appeal. en-us Tue, 02 Apr 2024 00:00:00 +0530 Fri, 03 Jan 2025 14:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750892 CESTAT Allahabad held that a registered SEZ unit providing software development services was not liable for service tax on intermediary services provided by US-based agents. The tribunal determined that agreements with overseas entities constituted intermediary services under reverse charge mechanism, but since both service provider and recipient were located outside taxable territory, the place of provision was USA. The demand covering April 2013 to June 2017 was unsustainable as it relied on non-existent statutory provisions. Additionally, revenue neutrality applied since the appellant could claim Cenvat credit for input services. The tribunal set aside the demand along with interest and penalty, allowing the appeal. Case-Laws Service Tax Tue, 02 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750892