TaxTMI 
TaxTMI 
2019 (7) TMI 1420
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....ry Service for the period from 01/02/2006 to 31/03/2008. Since the issue involved in all the three appeals is identical and there is a common impugned order, all the three appeals are being disposed of by this common order. 2. Briefly, the facts of the present case are that the respondent M/s. World Space India Pvt. Ltd. are registered with the service tax under the category of Broadcasting Agency Service and Business Auxiliary Service. Respondent is a subsidiary of M/s. World Space Inc. (WIN, for short). WIN has established a satellite system to provide digital audio broadcasting and data transmission service to subscribers in India. The appellant undertakes the promotion and marketing services of WIN but they did not discharge appropria....
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....e submitted that dropping the demand of service tax is not sustainable in law. He further submitted that the service rendered by the respondent does not amount to export of service in view of the interim stay granted in the case of Microsoft Corporation (I) Pvt. Ltd. Vs. CST, New Delhi [2009-TIOL- 1325-CESTAT-DEL]. 5. We have considered the impugned order and we find that the Commissioner has given detailed reasoning for dropping the demand. Further we find that the Commissioner has also relied upon the Board's Circular No.111/05/2009 dt. 24/02/2009 and has given a categorical finding that the services rendered by the respondent fall in the definition of export of service as provided in the Export of Service Rules, 2005. It is relevant to....
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....ant factor is the location of the service receiver and not the place of performance. In this context, the phrase 'used outside India' is to be interpreted to mean that the benefit of the service should accrue outside India. Thus, for Category III services [Rule 3(1)(iii)], it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India. In all the illustrations mentioned in the opening paragraph, what is accruing outside India is the benefit in terms of promotion of business of a foreign company. Similar would be the treatment for other Category III [Rule 3(1)(iii)] services as well. 4. All pending cases may be disposed of accord....