TaxTMI 
TaxTMI 
2023 (4) TMI 828
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....e to service tax; (b) As regards the demand of service tax amounting to Rs. 23,67,163/- whether the services of sales promotion and marketing received by the appellant from foreign based agents and commission paid to them is liable to service tax under Reverse Charge basis. 2. Shri Vinay Kansara, learned Counsel appearing on behalf of the appellant, for the first issue submits that the appellant have provided the sales promotion and marketing service in foreign country to the foreign company and the payment was received in foreign exchange therefore, this activity is amounting to export of service in terms of Export of Service Rules. He submits that the commission which falls under the head of Business Auxiliary Service, the services wer....
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....ng service provided to foreign Company and the payment thereof was maded to the Company outside India, the appellant did not pay service tax as they were under impression that the service tax is not required to be paid. However, subsequently they paid service tax of Rs. 14,64,388/- along with interest of Rs. 2,34,461/- upto 30.09.2009. He submits that with effect from 01.10.2009 the service tax was exempted vide Notification No. 18/2009-ST dated 07.07.2009 in respect of service provided by a commission agent located outside India. He submits that Adjudicating Authority has denied the notification on the ground that appellant have not declared the amount of commission paid in the shipping bills. He submits that except this procedural require....
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....under the category of Export of Service in terms of Rule 3(1) of Export of Service Rules, which is reproduced below:- Export of taxable service. - 3. (1) Export of taxable services shall, in relation to taxable services‚- (i) specified in sub-clauses (d), (m), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh), (zzzr), (zzzy), (zzzz), (zzzza) & (zzzzm) of clause (105) of section 65 of the Act, be provision of such services as are provided in relation to an immovable property situated outside India; (ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), [* * *], (n), (o), [* * *], (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv),(zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zz....
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....ision of such service: Provided that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India: Provided further that where the taxable service referred to in sub-clause (zzzzj) of clause (105) of section 65 of the Act is provided to a recipient located outside India, then such taxable service shall be treated as export of taxable service subject to the condition that the tangible goods supplied for use are located outside India during the period of use of such tangible goods by such recipient. [(2) The provi....
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....ion on various points is resolved as under : (i) That the Business Auxiliary Services of promotion of market in India for foreign principal made in terms of agreement dated 1-7-2005 amount to Export of Services and the Hon'ble Supreme Court decision in the case of State of Kerala and Others v. The Cochin Coal Company Ltd. - 1961 (12) STC 1 (S.C.) as also Burmah Shell Oil Storage and Distributing Co. of India Ltd. v. Commercial Tax Officers [1960 (11) STC 764] explaining the meaning of export is not relevant inasmuch as the same deals with the export of goods and not export of services; (ii) That the Business Auxiliary services provided by the assessee to their Singapore parent company was delivered outside India as such was used there a....
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....rvice of sales promotion and marketing received by the appellant, we find that there is no dispute that the receipt of service from the service provider located outside India and the recipient of service is in India, the appellant is liable to pay service tax under reverse charge mechanism in terms of Section 66A of the Finance Act, 1994. The appellant up to 30.09.2009 paid service tax along with interest. As regard the balance service tax amount for the period 01.10.2009 onwards, the appellant claimed exemption Notification No. 18/2009-ST dated 07.07.2009. We find that exemption was denied only on the ground that the appellant have not mentioned invoice number in the shipping bills for export of goods. However, the use of input service rec....