2019 (2) TMI 1253

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....ants received money in foreign exchange from M/s Duke CE USA. Ld. Counsel argued that they were not providing services of training to the employees or staff of Duke CE USA but to the third parties i.e., the client to Duke CE USA on their behalf. Ld. Counsel argued that the service provided by them is in the nature of BAS and not commercial training or coaching service. Ld. Counsel argued that the service provided by them qualifies as Export of Service. There cannot be any service tax on the said service. Ld. Counsel pointed out that while the commercial training and coaching service falling under clause (zzzc) of clause 105 of Section 65 of the Finance Act and is covered by clause (ii) of sub-Rule 3(1) of Export of Service Rules, 2005. He a....

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....tion 65(105)(zm) of the Act. Rule 3 of the Export of 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 or 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 (a) & (b) above. It is al....

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....1 We note that the services rendered by the appellant, namely, "Business Auxiliary Service" and "Scientific and Technical Consultancy Service" Come under Rule 3(i)(iii) of the Export of Service Rules. To qualify as exports, two conditions are required to be satisfied, that is, such services should be provided from India and used outside India and the payment in convertible foreign exchange. As regards the receipt of the payment in convertible foreign exchange, there is no dispute. As regards the first condition, when the service provider is located in India and the service recipient is located in abroad, use of the service rendered by the service provider is by the recipient located abroad and therefore, the services can said to be used out....

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....ed. In view of the above of the above position, we do not find any merit in the contention of the Revenue that the appellant is not entitled for the rebate. Thus, we do not find any merit in the appeal filed by the revenue, accordingly we dismiss the same." 3. Ld. AR relies on the impugned order. 4. We have gone through rival submissions. We find that the nature of service is not under dispute. The appellants are providing service to the third parties who are clients of M/s Duke CE USA who in turn is their client. The payment received by the appellant from Duke CE USA is in convertible foreign exchange. From the above it is apparent that the training provided by the appellants is not provided to the employees of M/s Duke CE USA but to the....