2020 (1) TMI 588

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....rseas Group Company in connection with the supply of goods by Indian Companies to their group companies. The case of the department is that the reimbursements received by the appellant from their group companies is towards the service of manpower supply by overseas to the appellant company, therefore, the same is taxable under section 66A of Finance Act, 1994 and Rules made thereuder on Reverse Charge Mechanism. 2. Ms. Vanashree Kalbhor and Shri S.R. Dixit, Learned Counsel appeared on behalf of the appellant. Ms. Kalbhor submits that in their own case for the earlier period, the same issue has been decided in the favour of the appellant by the Tribunal reported at M/s Lucy Electric India Pvt. Ltd., M/s Lucy Electricals Pvt ltd. Vs C.C.E ....

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....ceived by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India, such service shall, for the purposes of this section, be taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply." Rule 2(1)(d) of Service Tax Rules 1994 "Person liable for paying service tax:-(i) in respect of the taxable services notified under sub-section(2) of section 68 of the Act, means,- (G) in relation to any taxable service provided or agreed to be provided by any person which is located in a non-taxable territ....

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....rt of Service Rules, 2005 are in accordance with Apex Court's ruling to the effect that service tax is a value added tax which in turn is a destination based consumption tax in the sense that it is levied on commercial activities and it is not a charge on the business but a charge on the consumer. We note in the present case, the recipient of 7 ST/3973 of 2012 service are foreign entities and they are the consumers of these services provided by the appellant/assessee from India. The various persons in India to whom the goods were sold by the foreign entities or from whom various details and information were collected were not to be considered as recipient of service provided by the appellant/assessee. In Airbus Group India Pvt. Ltd. vs. CST....