2022 (5) TMI 1198

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....r the period from January 2010 to November 2010 for Rs.1,76,55,624/- has been rejected on the ground that the same does not qualify as export of service as well as on the ground of unjust enrichment. 2. Briefly stated the facts of the case are that the Appellant is engaged in rendering Market Research Agency services (MRAS) and Business Auxiliary Services (BAS) to its clients located in India and abroad. The Appellant had filed rebate claim in relation to MRAS services exported to its overseas clients wherein the Appellant offered market research services on the following two aspects-Quantitative data which is data based on research and Qualitative data which is based on performing interviews. 3. Accordingly the Appellant charged serv....

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....ervices, held that the performance of service does not get completed until the analysis report is delivered to the client. Such delivery of report, which is essential part of service, occurring outside India and used outside India will make the service as exported service. In the present case, we are dealing with market research agency service. The same ratio is applicable. The data collected from target groups are to be arranged and delivered in a manner as required by the foreign client. Without such delivery of the collected data there is no completion of service. Hence, we hold that part of the service is performed outside India. In such situation, the proviso clause of Rule 3(1) of the Export of Services Rules, 2005 will apply. The sai....

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....titled to the consideration for the service. Therefore, we find in this particular case that the service by the appellant is rendered partly outside India and partly in India although the part rendered outside India is very small. In terms of Rule 3(1) of the Export of Services Rules such services should be treated as export of services. The Learned Adjudicating Authority had held that these cannot be considered as export of service because the overseas client ultimately uses for promotion of his sales of the new varieties developed in India and the services provided by the assessee will be utilized in India. He reasoned that the services rendered by the assessee do not qualify as export of services. We do not agree with this view. The scie....