2016 (2) TMI 724

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....of Central Excise (Appeals), Pune - I. 2. The impugned order has set aside the rejection of the refund claims by Dy Commissioner of Service Tax, Pune - I. M/s Sai Life Sciences Ltd, registered as providers of 'scientific and technical consultancy service' to clients located outside India, also offers research and development expertise in new compounds of pharmaceutical products. Unable to utilise the accumulated CENVAT credit, three refund claims for Rs. 79,55,273/- for July 2012 to September 2012, Rs. 73,39,010/- for October 2012 to December 2012 and Rs. 96,57,578/- for April 2013 to June 2013 were filed. The refund claims were rejected on the ground that in accordance with Rule 4 of Place of Provisions of Service Rules, 2012 perf....

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.... 5 of the Service Tax Education Guide which relates to Place of Provision of Service Rules, 2012. 4. Learned Counsel for the respondent has placed reliance on the decision of this Tribunal in SGS India Pvt. Ltd. vs. Commissioner of Service Tax, Mumbai [2011(24) STR 60 (Tri.-Mumbai)], which was upheld by the Hon'ble High Court of Bombay [2014 (34) STR 554 (Bom.)], and the relevant finding therein: "8. The view taken by the Central Board of excise & Customs vide Circular no. 66/2005-ST is that export of services would continue to remain tax-free even after withdrawal of Notification no. 6/94-ST dated 9.4.1999. The Board was examining the effect of withdrawal of Notification no. 6/99-ST. This Notification exempted the taxable service sp....

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....d to 'export of services'. Again, as a matter of fact, the Central Board of Excise & Customs held 'export of services' to be tax-free notwithstanding the notifications. The law which categorically exempted export of services from payment of service tax was brought into force for the first time through the Export of Services Rules, 2003. Undoubtedly, the period of demand, in the present case, is prior to 2005. 9. The view taken hereinbefore is supported by the judgment of the Hon'ble Supreme Court in All India Federation of Tax Practitioner's case (supra), wherein it was held that service tax was a destination-based consumption tax in the sense that it was on commercial activities and was not a charge on the busine....