2016 (6) TMI 831

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....nd imposition of penalty. 2. As per facts on record the appellant is providing services to foreign companies for promoting their product in India, by getting in touch with the Indian buyers. For the said purpose, they are receiving the commission from the foreign companies in convertible foreign exchange. By treating the said services as export of services, no service tax was being paid by them. However, Revenue entertained a view that since said service were being obtained in India and were being utilized in India, the same cannot be held to be export of services so as to extend the benefit of Export of Service Rules, 2005 and raised a demand for the period October 2004 to September 2011 by issuance of 4 different show cause notices. Wh....

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....ing received by them directly from the Indian buyers, with the consent of the foreign company. The question which arises as to whether payment of 5% commission in Indian rupee would satisfy the condition of Export of Service Rules which require consideration for the services to be received in foreign exchange. We find that an identical issue was the subject matter of the Tribunal decision in the case of National Engineering Industries Ltd. vs. CCE, Jaipur reported as 2016 - TIOL - 149 - CESTAT - DEL. Its stand observed in the said decision as under :- "4. We have considered the contentions of both sides. In case of the commission received from foreign supplier for procuring orders from the Indian buyers to whom the goods were di....