TaxTMI 
TaxTMI 
2024 (11) TMI 925
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..../-. The Appellants filed their detailed reply making submission that they were rendering service to various entity because of which the entire demand is liable to be set aside. The turnover undertaken within the domestic market was less than the threshold limit, therefore, they were not required to pay any Service Tax. 2. After due process, the Adjudicating authority dropped part of the demand and confirmed the Service Tax demand of Rs.5,88,190/- along with interest and penalty. Being aggrieved, the Appellants have filed the present Appeal before the Tribunal. 3. The Ld.Consultant appearing on behalf of the Appellant submits that the Appellant has provided service to M/s. Mitsibishi Boeki Ltd., Japan by way of identifying customers in....
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....09 4,80,084/- 12.36% 57,610/ 1152/- 576/- 59,338/- 2010-11 2,53,593/- 10.3% 25,359/- 507/- 254/- 26,120/- 2011-12 4,24,513/- 10.3% 42,451/- 849/- 425/- 43,725/- 2012-13 11,83,140/- 12.36% 1,41,977/- 2,840/- 1,420/- 1,46,237/- Total 2,67,397/- 5,348/- 2,675/- 2,75,420/- 5. He further submits that other condition under Rule 3(2) of the Export of Service Rules, 2005 that the payment for such services should be received in foreign currency stands fulfilled by the Appellant and there is no dispute on this ground by the Revenue. 6. In respect of the demand pertaining to foreign currency earned as comm....
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....e exports and the other activities in their ST-3 Returns. All the foreign exchange earnings were also being shown in the Balance Sheets. Therefore, they have not indulged in any suppression. Accordingly, he submits that the Department has not made out any case of suppression so as to invoke the extended period provisions. Hence, he prays that the confirmed demand for the extended period may be set aside on account of limitation also. 9. The Ld.AR reiterates the findings of the Adjudicating authority and justifies the confirmed demand. 10. Heard both sides and perused the appeal papers and other documentary evidence placed before us. 11. From the Table given above, it is observed that the Department is not disputing that the Appella....
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....k to him; (iii) Indian agents who undertake marketing in India of goods of a foreign seller. In this case, the agent undertakes all activities within India and receives commission for his services from foreign seller in convertible foreign exchange; (iv) Foreign financial institution desiring transfer of remittances to India, engaging an Indian organisation to dispatch such remittances to the receiver in India. For this, the foreign financial institution pays commission to the Indian organisation in foreign exchange for the entire activity being undertaken in India. The departmental officers seem to have taken a view in such cases that since the activities pertaining to provision of service are undertaken in India....
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....vided in relation to business or commerce to a recipient located outside India; and (b) If they are provided in relation to activities other than business or commerce to a recipient located outside India at the time when such services are provided. 3. It is an accepted legal principle that the law has to be read harmoniously so as to avoid contradictions within a legislation. Keeping this principle in view, the meaning of the term 'used outside India' has to be understood in the context of the characteristics of a particular category of service as mentioned in sub-rule (1) of rule 3. For example, under Architect service (a Category I service [Rule 3(1)(i)]), even if an Indian architect prepares a design sitting in India fo....
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....tions should be given wide publicity among trade and field officers. 5. Please acknowledge receipt. 6. Hindi version follows. 12. From the above it can be observed that in case of 'Business Auxiliary Services'/'Business Support Services' they would fall under the category of 3(1)(iii). As per the provisions under Rule 3(1)(iii)of the Export of Services Rules 2005, so long as the services are provided to an entity situated abroad, the same would be exempted from payment of Excise Duty, provided the consideration is received in convertible foreign exchange. The clarification given by the Board Circular echoes the same view. In the present case, both the facts as to whether the service has been rendered to a foreign entity....