2018 (9) TMI 391

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....d the services of promotion of their products by an agent outside India. The service of promotion of product outside India was provided by the said agent outside the India and used solely for export of goods outside India. He pointed out that the show cause notice demanding service tax was issued to them by invoking extended period of limitation. He pointed out that the demand pertain to the period prior to 18.04.2006 has been dropped. He argued that the demand for the period subsequent to 18.04.2006 also needs to be dropped as the service provided to them is not taxable as the same was provided and consumed outside India. He relied upon the decision of the Hon'ble Apex Court in the case of Laghu Udyog Bharti vs. UOI - 2006 (2) STR 276 ....

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....lant had not declared the services received by them in the ST-3 returns and hence, there was suppression of facts. 4. We have gone through the rival submissions. We find that Section 66A was under dispute till it was finally clarified by the Hon'ble Apex Court in the case of Indian National Shipowners Association vs. UOI - 2010 (17) STR J-57 (SC) by upholding the decision of Hon'ble Bombay High Court in the case of Indian National Shipowners Association reported in 2009 (13) STR 235 (Bom.). It is seen that the constitutional validity of the Section 66A, in the said proceedings before the Hon'ble High Court. However, the same has not been opposed by the ld. Counsel in the said case. In the instant case, the period of dispute i....

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....he show cause notice is barred by limitation of time." In the instant case, while the service provider located abroad, he has been procuring orders for the appellant located in India. The service falls under clause (iii) of Rule 3 of Taxation of Services (Provided from outside Indian and received in India) Rules, 2006. The said clause reads as under:- "(iii) specified in clause (105) of section 65 of the Act, but excluding- (a) sub-clauses (zzzo) and (zzzv); (b) those specified in clause (i) of this rule except when the provision of taxable services specified in clauses (d),(zzzc) and (zzzr) does not relate to immovable property; and (c) those specified in clause (ii) of this rule, be such ser....