2011 (1) TMI 649

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....wa: The service tax of Rs.2,63,754/- stands confirmed against the applicant for the period from March, 2007 to September, 2007 under the category of business auxiliary services. During the said period, the applicant provided services to the client located in Nepal and got commission for finding out the customers for their Nepalese client. In addition to this, the penalty stands imposed on the a....

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....etter appreciation, the relevant paragraph of the order of the Commissioner (Appeals) is reproduced below:     "I have also examined the main contention of the appellant that taxability of a service pertained to territorial jurisdiction and not to the place from where it had been provided or is received because service tax is a destination based consumption tax. I find that it is....

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.... received by the appellant in Indian currency and not in convertible foreign exchange as has been stipulated under the said rules and thus I do not find the appellant eligible for availing exemption from payment of service tax on services rendered by them to M/s.RSML, Nepal." 4. We have examined the Export of service Rules, 2005 and which admittedly provides for exemption of service exported su....