2018 (9) TMI 584

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....onsideration: "Whether in the facts and circumstances of the case, the CESTAT was right in holding that the custodial services provided by the assessee to Foreign Institutional Clients (FII's) amounts export of service as provided under Rule 3 of Export of Service Rules, 2005, for the period from May, 2006 to December, 2007?" 3. Respondent is registered under the category of Banking and Financial Services as defined under Section 65 (12) of the Act, providing taxable service under Section 65(105) (zm) of the Act. This appeal is for the period May, 2006 to December, 2007. 4. Respondent renders custodial services to their client situated outside India. Respondent claims rebate of service tax paid under the Exports and Service Rul....

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.... sub-clauses (a), (f),(h),(i),(j),)(l),(m),(n),(o), (s),(t),(u),(w),(x),(y),(z),(zb),(zc),(zi),(zj),(zn),(zo),(zq),(zr), (zt),(zu),(zv)(zw),(zza),(zzc),(zzd),(zzf),(zzg),(zzh),(zzi),(zzl), (zzm)(zzn),(zzo),(zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf) and (zzzp) of clause (105) of section 65 of the Act, be provision of such services as are performed outside India; Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India; (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 in sub-cl....

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....er Section 65(105)(zm) of the Act. Rule 3 of the Export Services Rules 2005 at the relevant time, classifies export of taxable services into three categories namely: (a) services rendered/ provided in relation to immovable property situated outside India; (b) performance based services which are necessarily to be performed outside India; and (c) services in relation to business of commerce, provided to recipient located outside India at the time when such services are provided. The clauses (a) & (b) above specify the taxable services which fall within its ambit. Section 65 (105)(zm) of the Act does not find mention in clauses (a) & (b) above. It is also not excluded from clause (c). Therefore, it falls within clause (c) above. ....