TaxTMI 
TaxTMI 
2010 (3) TMI 348
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.... possible to decide the appeal itself at this stage and hence proceeded to do so with the consent of both sides, after granting the prayer for stay. 2. The brief facts of the case are that during the period 1-7-2004 to 18-4-2006 the appellants, who are engaged in the manufacture of passenger cars and are registered Central Excise assessees, provided low cost sourcing and supply chain management services (hereinafter referred to as services) to M/s. Ford Motor Co., USA (hereinafter referred to as FMC) that involved evaluation of prospective vendors/manufacturers and reports of such evaluation were sent by them to FMC which thereafter had the option/discretion to choose any of the vendors in respect of whom reports were submitted by the ap....
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....tion 78 of the Finance Act, 1994. Hence this appeal. 3. We have heard both sides. The issues in dispute are whether services rendered during the year 2005-06 (prior to 19-4-2006 from which date the assessees started paying service tax) would fall within the scope of the Export of Service Rules, 2005, and whether the amounts received during the year 2005-06 in respect of services rendered prior to 15-3-2005 would be eligible for exemption under Notification No. 21/03, dated 20-11-2003 inasmuch as the amounts had been received in convertible foreign exchange. 4. Export of Service Rules were introduced vide Notification No.9/2005, dated 3-3-2005. Rule 3(3) reads as under:- (3) in relation to taxable services, other than — (i) the....
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....ew rule reads as under (7) Export of taxable services, shall in relation to taxable services — (i)…………… (ii)…………… (iii) specified in clause (105) of Section 65 of the Act, but excluding, - (a) sub-clauses (zzzo) and (zzzv); (b) those specified in clause (i) of this rule except when the provision of taxable services specified in sub-clauses (d), (zzzc) and (zzzr) does not relate to immovable property; and (c) those specified in clause (ii) of this rule, when provided in relation to business or commerce, be provision of such ser vices to a recipient located outside India and when provided otherwise, be pro vision of such services to a recipient located outside India at the time of provision of suc....
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.... India, they were not covered under the Export of Service Rules and, therefore, the assessees were liable to pay service tax. The plea of the assessees that the impugned order has been passed in contravention of the principles of natural justice for the reason that they were not heard on the question as to whether the recipient of their ser vices had a commercial or industrial establishment or office in India merits acceptance. It is their submission, as brought, out in the misc, application, that recipient abroad did not have office in India. In this connection, an affidavit of Shri Preetam Singh Khera, India Tax Manager of the assessees has been filed. The affidavit is reproduced herein below I, Preetam Singh Khera, son of late Shri Ha....
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....nt services (LCS/SCM) provided to FMC was recorded under this data base. This database, did not have specific codes for some customers including M/s. FMC. Name of one such customer is illustrated hereunder 1. Easa Mohideen, Pune In such cases, the computer generated debit memos had employed the words "MIS supplier, Chennai, India". One such computer generated debit memo raised on Easa Mohideen, Pune is annexed to this affidavit." The apjlication is allowed by taking on record the above affidavit. The interest of justice require that the case be decided afresh by the adjudicating authority after extending reasonable opportunity to the assessees, to explain the significance of the documents produced by them in response to the Commiss....