2007 (3) TMI 33

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.... pre-deposit service tax of Rs. 2,97,10,762/- and penalty of Rs. 4,50,00,000/- under Section 78 of Finance Act, 1994, apart from penalty of Rs. 200/- everyday under Section 76 of the Act. The appellants are registered under the category of "Courier Agency Services". They were also exporting courier of various parcels and articles and delivering the same abroad. For that they had collected small co....

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....he services would be deemed to have been performed outside India. He relies on Board's Circular F. No. 341 /34/2005-TRU dated 3-10-2005. This Circular clarifies that where both the service provider and the service recipient are in India and the service is provided in India, they are required to discharge the service tax. The learned Counsel points out that this Circular is not applicable for the r....

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.... even after withdrawal of Notification No. 6/1999, dated 9-4-1999. It is further clarified that service consumed/provided in India in the manufacture of goods which are ultimately exported, no credit of service tax paid can be availed or reimbursed at present as inter-sectoral tax credit between services and goods are not allowed. The learned Counsel submits that the Commissioner has not considere....

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....e procedures. The proviso to Rule 3 itself clearly states that even if part of export is done outside India, then it shall be considered to have been performed outside India. The Board's Circular No. 56/5/2003-S.T., dated 25-4-2003 clearly clarifies that the service tax is destination based consumption tax and it is not applicable on export of services. The Board's Circular F. No. 341/34/2005-T....