2014 (1) TMI 1045

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....amer Agents'. Scrutiny of the ST-3 returns revealed that the appellant had not discharged Service Tax liability on the said service rendered during the period from 1st November, 2003 to 19th November, 2003. The Service Tax liability worked out to Rs. 49,37,105/- on the consideration received of Rs. 6,17,13,814/-. Therefore, show cause notice dated 25-2-2005 was issued to the appellant demanding Service Tax of Rs. 49,37,105/- along with interest thereon and also proposing to impose penalties. The appellant submitted that they have received the consideration in convertible foreign exchange as the said services were rendered to their foreign principal and, therefore in terms of Notification No. 21/2003, dated 20-11-2003 and Circular No. 56/5/2....

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....xport of service and the same would continue to remain tax free even after the withdrawal of Notification No. 6/1999, dated 9-4-1999. Therefore, the demand raised in the present case is not sustainable in law. 3.1 The learned counsel also relies on the decision of the Tribunal in the case of SGS India Pvt. Ltd. v. Commissioner of Service Tax, Mumbai - 2011 (24) S.T.R. 60 wherein an identical issue arose regarding 'technical inspection and certification service' rendered during 1-7-2003 to 19-11-2003 for which consideration was received in convertible foreign exchange. This Tribunal, after considering the above circular held that no Service Tax is payable during the said period. 3.2 Accordingly, he prays for setting aside the....

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.... earlier Notification No. 6/99-Service Tax, dated 9-4-1999 which exempted taxable services from payment of service tax so long as payment for services rendered is received in convertible foreign exchange which is not repatriated outside India. Consequent to the issue of Notification No. 2/2003 cited above, service tax would be leviable on all taxable services consumed or rendered in India, irrespective of whether the payment thereof is received in foreign exchange or not. 2. In this regard various representation have been received by the Board raising apprehension that because of the withdrawal of the Notification No. 6/99, export of service would be affected as it would be costlier in the international markets. 3. The Board....