TaxTMI 
TaxTMI 
2014 (6) TMI 766
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...., inter-mixture of vitamins etc. chargeable to Central Excise duty. These items are also manufactured by the respondent in their factories located in other parts of India. Some of these products are also got manufactured by them through their job workers in India. Beside this, these products are also manufactured by their sister concerns located outside India - M/s Nestle Bangladesh, M/s Nestle Indonesia, M/s Nestle Lanka Ltd. etc. The respondent in their factory at Moga have a fully equipped Central Quality Assurance Laboratory (CQAL) in which not only they test the goods manufactured at Moga factory but also test the samples received from their job workers, their other units located in India and the samples received from their sister conc....
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.... 15/03/05, the Commissioner (Appeals) held that the testing service provided by the respondent to their sister concern abroad would not attract service tax in terms of Export of Service Rules, 2005 as the service provided by the respondent amounts to export of service in terms of Rule 3 (1) read with Rule 3 (2) of the Export of Service Rules, 2005. With regard to the testing of the samples received from the job workers manufacturing the respondent's products, the Commissioner (Appeals) held that the respondent have not provided service to anybody as they have tested their own goods in their own laboratory and had not received any payments from their job workers. Accordingly the Commissioner (Appeals) set aside the service tax demands in res....
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.... not correct. 4. Shri B.L. Narasimhan, Advocate, the learned Counsel for the respondent, pleaded that as regards the services of testing provided to M/s Nestle Bangladesh, M/s Nestle Indonesia, M/s Nestle Lanka Ltd., during period prior to 15/03/05 these services were fully exempted from service tax by virtue of exemption Notification No. 21/2003-ST as payment in respect of these services was being made to the respondent in convertible foreign exchange and there is nothing on record to show that these payments or any part thereof was repatriated from or sent outside India, that as regards the period w.e.f. 15/03/05, during this period the Export of Service Rules, 2005 had come into force and in terms of Rule 3 (1) (ii) readwith Rule 3 (2....
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....ner (Appeals) that the respondent have tested their own goods and, as such, have not provided any service to the job workers and, hence, no service tax would be chargeable. Even in the grounds of appeal in the Revenues appeal, it is not mentioned as to whether the respondent had charged any amount from the job workers for testing of the samples and if so, how much amount had been charged. 7. As regards the testing of the samples received from M/s Nestle Bangladesh Ltd., M/s Nestle Indonesia, M/s Nestle Lanka Ltd. there is no dispute that payment for conducting the tests had been received by the respondent in convertible foreign exchange and the amount received in foreign exchange had not been repatriated from or sent outside India. Ther....