TaxTMI 
TaxTMI 
2010 (5) TMI 433
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....alties imposed on the appellant. A major part of the demand of Service Tax is under the Head "Business Auxiliary Services" and the remaining part amounting to over Rs. 35 lakhs is under the head "Market Research Services". The impugned order was passed by the Commissioner in adjudication of a show-cause notice which was issued in June, 2006 by invoking the extended period of limitation under Sec. 73(2) of the Finance Act, 1994. 2. After examining the records and hearing both sides, we note that the appellant was engaged in the business of providing back office support services involving data management and call centre services to its overseas clients. Orders for such services were collected by the appellant through a network of relate....
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....d rendered the aforesaid services to recipients stationed abroad and repatriated a part of the inward foreign exchange remittance made by the overseas clients. The appellant was registered with the Ministry of Commerce, Government of India as a Software Technology Park Unit. After collecting the particulars of inward and outward remittances, the department took the view that the appellant was liable to pay Service Tax on the services exported by them during March, 2003 to January, 2005. It was felt that the benefit of Notification No. 21/03-S.T., dated20-11-03or its predecessor Notification was not available to them. On this basis, the demand of Service Tax was raised and penalties were proposed. The relevant show-cause notice issued in thi....
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....a Federation of Tax Practitioner v. UOI [2007 (7) S.T.R. 625 (S.C.)], wherein, it was held that Service tax was destination based consumption tax in the sense that it was on commercial activities and is not a charge on the business but on the consumer and it would, logically, be leviable only on services provided within the country. Finally, the ld. counsel relies on the Tribunal's Stay Order in Suprasesh General Insur. Serv. & Brokers Pvt. Ltd. v. C.S.T., Chennai [2007 (8) S.T.R. 513 (Tri.-Chennai)], wherein, after considering the relevant Notifications and Board's circular, it was found, prima facie, that no Service tax could be levied on Insurance Auxiliary Service exported by the assessee, irrespective of the manner in which considerati....
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....the larger period of limitation was not invocable in this case. 6. The ld. JCDR. representing the Revenue, submits that 'export of service' was exempted from payment of Service tax only in 2005 and that, prior thereto, it was exigible to Service tax and that is why the relevant Notifications were issued by the Central Government granting conditional exemption from payment of Service tax on taxable services exported out of India. Referring to the facts of the case, it is submitted that, though numerous opportunities were given to the appellant, they did not furnish fool-proof information on the nature of the outward foreign exchange remittances made by them. They only claimed that those remittances were not in the nature of repatriatio....
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....nal's Stay Order in Suprasesh General Insur. Serv. & Brokers Pvt. Ltd. (supra). In that case, export of Insurance Auxiliary Service by the assessee was at issue and it was, prima facie, held that such export would be exempted from Service tax even after rescission of Notification No. 6/99-S.T. This view was taken after considering subsequent Notifications No. 2/03-ST and 21/03-ST as well as the provisions of Export of Services Rules, 2005. The view taken by the Hon'ble Supreme Court in All India Federation of Tax Practitioner's case would also go a long way to support the ld. counsel's argument, though the Finance Minister's speech may not be of any aid to them, in as much as, in that speech, the Hon'ble Minister has referred to the 'propos....