2019 (2) TMI 674

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....vided by the appellant to the principals were as follows: (a) Undertakes to use their best efforts to represent the interests of TFL in business relationships as if they were own and includes the careful examination and monitoring of the financial standing and general reputation of customers. (b) To conduct negotiations with authorities and other bodies, where such negotiations are requested by TFL Leadertechnik or are necessary in connection with the sale of the products. (c) Are obliged to maintain representative office premises and laboratory facilities and employ the necessary office and sales staff on their own account. (d) Are obliged to comply with the directions given by TFL ledertechnik in connection with the representa....

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....of Service Rules, 2005, any service, which is taxable under clause (105) of section 65 of the Finance Act, 1994 may be exported without payment of service tax. What constitutes export of a service is defined in Rule 3, according to which there are three categories of services. The scope of these categories of services was clarified by the Board in circular No. 111/05/2009-ST, dated 24.02.2009 as follows: (i) Category (I) services are those services which have some nexus with immovable property such as architect service, general insurance service, construction service, site preparation service etc. and they should be treated as export if they are provided in relation to an immovable property situated outside India. (ii) Category (II) r....

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....s what is the nature of services rendered by the appellant and whether these are exported. Consequently, whether service tax is payable on these services and whether any interest is chargeable or penalty imposable upon the appellant. A plain reading of the nature of services rendered by the appellant makes it clear that they are meant for promoting the business of their client M/s TFL Ledertechnik, GmBH & Co Germany and the services clearly fall under the definition of "Business Auxiliary Services". Such services fall under the category III of the Export of Service Rules 2005 and since they are provided in relation to the business or commerce of the service recipient located outside India, they amount to export of services. Therefore, no se....