TaxTMI 
TaxTMI 
2014 (11) TMI 248
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.... the issue involved is common in all these appeals, they are taken up together for consideration and disposal. 2. The appellant herein is M/s. Reuters India Pvt. Ltd., Mumbai. They are a part of the Reuters Group worldwide. For the purpose of service tax, they are registered with the department under the category of 'On-Line Information and Database Access and/or Retrieval Services'. During the course of audit of the records of the company, it was noticed that the appellant had received 'data and edit fees' in convertible foreign exchange from M/s. Reuters Ltd., U.K., a sister-concern. It was also noticed that the appellant had purchased equipment from Reuters Ltd., U.K. and maintained communication lines for providing Reuter'....
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....es' and 'marketing and other support services' were rendered by the appellant to their sister-concern in U.K. in terms of an agreement dated 24/09/2004. The Reuters Group produced news and financial information and related products. The appellant is engaged in collecting and providing, to Reuters Ltd., UK, data for inclusion in those products. For the services rendered, Reuters Ltd., UK, compensated the appellant on 'a cost plus basis'. The service rendered by the appellant to their sister-concern is more appropriately classifiable under 'Business Support Services' as defined under Section 65(104c) of the Act and, therefore, the classification proposed in the impugned order under the category of 'Management, Maintenance or R....
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.... thereof, the appellant received the consideration in convertible foreign exchange. Therefore, this service also would qualify as exports and hence would not be liable to service tax. 3.4 In view of the above the appellant prays for grant of stay and waiver from pre-deposit of the dues adjudged. 4. The learned Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. He submits that the appellant has communicated data using the equipment and communication lines supplied by the foreign sister-concern and the appellant is bound to maintain these communication lines and undertake repairs whenever necessary. Therefore, the activity undertaken by the appellant would amount to maintenance or repair s....
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....ng, verifying data and transmission of the same to the foreign-sister concern of the appellant. The information has to be transmitted either electronically or otherwise and the consideration is paid on cost plus basis. Thus, the services rendered by the appellant does not seem to be of the nature of any management or repair services as alleged in the show cause notices and as concluded in the impugned order. The data furnished by the appellant is used by the foreign entity for inclusion in their products for dissemination to the customers situated worldwide. In other words, the activity of the appellant supports the business undertaken by the foreign entity abroad. Thus, we find there is merit in the argument of the appellant that the activ....