2016 (12) TMI 1527

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....jection of the refund claim filed by the appellant in respect of service tax paid by them on the brokerage charges which were collected from Foreign Investment Institutions during the period December 2003 to October 2004. The appellant had charged broking charges as a percentage of transaction made by the FIIs and discharged service tax liability under reverse charge mechanism holding a view that they are liable to pay service tax. Subsequently, they were informed about the Notification No. 21/2003-ST dated 21/11/2003 which granted exemption. Both the lower authorities have came to a conclusion that appellant is not eligible for the refund. Accordingly same has been credited to the Consumer Welfare Fund. 4. On perusal of the invoices, we f....

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....ort of services as the service tax being a destination based tax, the recipient of the services are situated abroad. We find that identical issue came up before the bench in the case of Commissioner of Service Tax, Pune  II v. HSBC Software Development (I) Pvt Ltd 2016 (42) STR 575 (Tri.-Mumbai) wherein, in paragraph 7 the bench held as under: "7. We now turn to the taxability of management, maintenance or repair service rendered by the respondent prior to the amendment of Export of Service Rules, 2005 discussed supra. That export of taxes along with commodity or invisible exports renders them unviable in the international market place and handicaps exporters, so vital to robustness of the domestic economy, is an accepted parameter t....

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....n for such testing and analysis in India. However, the report of such tests and analysis was sent abroad. The clients of the respondent were foreign clients, paid the respondent for such services rendered, in foreign convertible currency. It is in that sense that the Tribunal holds that the benefit of the services accrued to the foreign clients outside India. This is termed as export of service . In these circumstances, the Tribunal takes a view that if services were rendered to such foreign clients located abroad, then, the act can be termed as export of service . Such an act does not invite a Service Tax liability. The Tribunal relied upon the circulars issued and prior thereto the view taken by it in the case of KSH International Pvt. Lt....