https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=460744 https://www.taxtmi.com/caselaws?id=460744 Non-payment of service tax - providing nonbinding investment advisory services to various overseas clients (Group companies) as per the contractual norms agreed upon - export of service as per the conditions laid down under Rule 3(2)(a) of the Export of Service Rule, 2005 or not - CENVAT Credit - input services - rent-a-cab service - outdoor catering service - air travel agent service. Non-payment of service tax - providing nonbinding investment advisory services to various overseas clients (Group companies) as per the contractual norms agreed upon - export of service as per the conditions laid down under Rule 3(2)(a) of the Export of Service Rule, 2005 or not - HELD THAT:- It is an admitted fact on record that the appellants have entered into the agreement with the overseas entities for providing the services under the category of non-binding investment advisory services in their behalf. The payment for provision of said services were also received in convertible foreign exchange. The services provided by the appellants were for the benefit of the overseas entities and as such, falls under the Category-III of services defined under Rule 3(1) (iii) ibid - CBEC vide Circular dated 13.05.2011 has also clarified the said phrase used outside India , mentioning that the benefit should accrue in favour of the overseas entities for the purpose of qualifying certain transaction as export of service. Further, it is also found that the issue arising out of the present dispute is no more open for any debate, in view of the order passed by this Tribunal in the case of Arcelor Mittal Stainless India Pvt. Ltd. [ 2023 (8) TMI 107 - CESTAT MUMBAI-LB] . The Larger Bench of the Tribunal in said case has held that since the benefit of service is accruing outside India, the said service should qualify as export of service in terms of the Rules, 2005. CENVAT Credit - input services - rent-a-cab service - outdoor catering service - air travel agent service - adjudicating authority has denied the benefit of Cenvat Credit solely on the ground that no documentary evidences were produced to demonstrate that those disputed services would be considered as input service - HELD THAT:- Since, the appellants are the business entity and utilized the services for provision of the output services and also paid the service tax on the input services, it cannot be said that those disputed services were not used/utilized for provisions of the output services. Since, the disputed services were used for accomplishing the purpose of the business, the said service, should qualify as input service , defined under Rule 2(l) ibid. Conclusion - i) The non-binding investment advisory services provided by the appellants qualified as export of service. ii) The appellants were entitled to avail Cenvat Credit on the disputed input services. There are no merits in the impugned order, insofar as it has confirmed the adjudged demands on the appellant - appeal allowed. Case-Laws Service Tax Tue, 09 Jan 2024 00:00:00 +0530