2014 (9) TMI 878

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....P. Mollar-M-A/S, Copenhagen, Denmark. For the services rendered, they received commission in convertible foreign exchange from their principal. M/s. A.P. Mollar-M-A/S group company holds 100% equity in the appellant company and the appellant company declared dividend which was remitted to the holding company. The Revenue was of the view that since the dividends have been repatriated and since dividends arise out of the appellant company's activities including exports, it would amount to repatriation of export proceeds and, therefore, they are not eligible for benefit of Notification No. 6/99, dated 9-4-99 and 21/2003-S.T., dated 21-11-2003. Accordingly, a Service Tax demand of Rs. 18,55,51,047/- was confirmed against the appellant for the p....

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.... convertible foreign exchange for the market research conducted for the parent company and indicated in the balance sheet as incomes are repatriated in form of dividend." The ratio of the said decision would apply to the facts of the present case. Accordingly, he prays for allowing the appeal. 4. The learned Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. 5. We have carefully considered the submissions made by both sides. 5.1 In the present case, the appellant has rendered the service of steamer agents and has earned income in convertible foreign exchange. Vide Notification Nos. 6/99-S.T. and 21/2003-S.T., Service Tax levy has been exempted if consideration for th....

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....fication would apply in the appellant's case. On careful reading of the proviso, we find that the said proviso talks about a situation where the payment which is received in convertible foreign exchange for taxable service is "repatriated from or sent out side India". The plain reading of the said proviso would indicate that any amount received for the taxable services has to be indicated or shown as repatriated from or sent outside India. Both the lower authorities have extended the proviso to read the amount given as dividend by the appellant would fall under the category of repatriated from or sent outside India. This submission made by the ld. SDR and the conclusion reached by the lower authorities needs to be deprecated for more than o....