TaxTMI 
TaxTMI 
2011 (1) TMI 1063
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.... for the Respondent. [Order per : S.S. Kang, Vice-President]. - Heard both sides. The appellants filed this application for waiver of pre-deposit of service tax of Rs. 41,11,398/- and penalties. The demand is confirmed on the ground that the appellants are providing business auxiliary service to M/s. IXIA Technologies Pvt. Ltd., USA. The contention of the appellants is that the appellants enter....
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....IBM India (P) Ltd. v Commissioner of Central Excise, Bangalore reported in 2010 (19) S.T.R. 520 (Tri.-Bang.) and the other decisions whereby in similar situation, pre-deposit of demand is waived. 2. The Revenue submitted that as the service is provided within India, therefore, the appellants are liable for service tax on the activity of procuring orders. 3. We find that the dispute is ....
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....in view, the meaning of the term 'used outside India' has to be understood in the context of the characteristics of a particular category of service as mentioned in sub-rule (1) of Rule 3. For example, under Architect service [a Category I service [Rule 3(1)(i)], even if an Indian architect prepares a design sitting in India for a property located in U.K. and hands it over to the owner of such pro....
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....], it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India. In all the illustrations mentioned in the opening paragraph, what is accruing outside India is the benefit in terms of promotion of business of a foreign company. Similar would be the treatment for other Category III [Rule....