2023 (6) TMI 591

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.... received services under the category of clearing and forwarding agency service from M/s. Project Management Inc. USA and paid service tax under reverse charge mechanism under the provisions of Section 66A of Finance Ac, 1994 read with Rule 2(1)(d)(iv) of Service Tax Rules on the taxable value upto the month of June 2008. From July 2008 onwards, the appellant stopped paying service tax and contended that as per Rule 3 of Taxation of Services (Provided from Outside India and Received in India) Rules 2006, they have no liability to pay service tax on the transaction as the services are completely performed outside India. Show Cause Notices were issued for the period July 2008 to March 2009, April 2009 to March 2010, April 2010 to March 2011 a....

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....son who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and (b) received 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 the 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: 5. The above Section has to be read along with the Taxation of Services (Provided from Outside India and....

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....licable to the appellant on the ground that the same would be applicable only when part of the services are performed in India. On reading of the Rule, it is clear that if the services which are mentioned therein are performed outside India, there is no liability to pay service tax. 7. The very same issue was considered by the Tribunal in the appellant's own case as reported in 2018 (11) TMI 1151 CESTAT, Chennai and observed as under:- "5. From the facts narrated above, it is seen that the appellants have provided clearing and forwarding services to the service recipient who is situated outside India. The Tribunal in the case of Bnazrum Agro Export Pvt. Ltd. (supra), had occasion to analyse the very same issue and it was held th....