TaxTMI 
TaxTMI 
2017 (8) TMI 222
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....the Service Tax Rules 1994. The reports of the test and analysis provided by the foreign based company were received and utilised by the appellants. Accordingly two show-cause notices dated 17.10.2008 covering the period 2008-09 and 2004-05 to 2007-08 respectively were issued to the appellants alleging that appellants are liable to discharge service charge liability on the service received by them from the foreign based service provider under the reverse charge mechanism. Both show-cause notices were adjudicated wherein the charges made in the show-cause notices were confirmed. Being aggrieved by the Order-in-Original, the appellants filed appeals before the Commissioner (Appeals). The ld. Commissioner (Appeals) dropped the demand uptil 17.....
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.... was provided by the foreign service provider in relation to the testing of the goods supplied by the appellants to foreign country. The performance of such service was wholly carried out in foreign country. For the purpose of levying service tax on the services provided from outside India and received in India, section 66A was enacted wherein Taxation of Services (Provided from outside India and received in India) Rules, 2006 was issued. The relevant provision of rule is reproduced below:- "3. Taxable services provided from outside India and received in India. Subject to section 66A of the Act, the taxable services provided from outside India and received in India shall, in relation to taxable services, (i) specified in sub-clauses (d....
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....) of Rule 3 as reproduced above, in case of technical testing and analysis service (zzh) if such service is performed in India even either wholly or partly by the person located outside India then it will be taxable in the hands of the recipient under the reverse charge mechanism. However, in the present case the technical testing and analysis was provided wholly in a country outside India, therefore by virtue of Rule 3 clause (ii) the said service is not liable to service tax. This issue has been considered by this Tribunal in the case of Crompton Greaves Ltd. (supra) wherein the Tribunal has passed the following order:- "The appellant are engaged in manufacture of goods falling under Chapter 85 of the Central Excise Tariff Act, 1985. One....
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....nd received in India) Rules, 2006, the services was held to be partly performed in India, hence to be considered as performed in India and leviable to service tax. 4. We note that the service in question is purely a testing service which is performed in the laboratory of M/s. KHVL Netherlands. The certificate from KHVL shows that the test was conducted in their laboratory in Netherlands. Under Section 66(A), any service received by a person in India from out side India shall be treated as if the recipient had himself provided the service. Rule 3 of the Taxation of Services (Provided from Outside India and received in India) Rules, 2006, determine the fact as to when a service is considered to be received in India. In the present case, admi....