TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1557
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....on 73 of Finance Act, 1994 and Rs. 10,45,673 under rule 14 of CENVAT Credit Rules, 2004, along with appropriate interest, and for imposition of penalties of Rs. 6,58,85,365 under section 78 of Finance Act, 1994 besides penalties under section 76 of Finance Act, 1994, are the findings stemming from allegation of non-discharge of tax on consideration received from M/s McAfee Ireland Ltd for 'business auxiliary service' rendered from 2007-08 to 2010-11, in one show cause notice, and common allegation of having taken ineligible credit of tax paid on billings for 'rent-a-cab service', 'car parking service', 'hotel charges' and 'insurance services', in four notices including that supra warranting recovery of Rs. 5,49,469 and of Rs. 1,07,161 for 2....
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....vice'; for the period after March 2011, reliance was placed on decision of the Tribunal in HID India Pvt Ltd v. Commissioner of Central Excise, Customs & Service Tax [2017 (5) TMI 95 - CESTAT Bangalore] and in BNY Mellon International Operations (I) P Ltd v. Commissioner of Central Excise, Pune-III [2017 (47) STR 290 (Tri-Bom)]. 3. On the finding of service having been rendered to distributors and re-sellers of M/s McAfee Ireland Ltd from negating the claim of consideration thereof being export proceeds, together with the finding that proceeds had not been realised in 'convertible foreign currency', to charge tax thereof, Learned Counsel contended that the adjudicating authority had failed to consider documentary evidence in the form of ....
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.... 19-4-2006, under rule 3(3) of the 2005 Export Rules, the export of taxable service would mean, in relation to taxable services, such taxable services which have been provided and used in or in relation to commerce or industry and the recipient of such service is located outside India. For the period between 19-4-2006 and 1-3-2007, export of taxable service in relation to business or commerce, is the provision of such service to a recipient located outside India when such service is delivered outside India, and used outside India; and payment for such service provided outside India is received by the service provider in convertible foreign exchange. However, as the phrase delivered outside India' in rule 3(2)(a) did not provide clarity ....
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....onship of service provider and service recipient between Arcelor India and Arcelor France. 48. A service recipient is a person who makes a request for a service, in exchange of a consideration. In fact, he is the person who is liable to pay for the services received. Service recipient is not a person who is affected by the performance of the service. The Finance Act does not define the term 'service recipient'. However the same has been clarified in the CBEC Education Guide as follows: "5.3.3 Who is the service receiver? Normally, the person who is legally entitled to receive a service and, therefore, obliged to make payment, is the receiver of a service, whether or not he actually makes the payment or som....
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....are located is irrelevant. 52. As noticed above, it was the consistent view of the High Courts and the Tribunal that export of service would take place under rule 3(1)(iii) of the 2005 Export Rules if a person residing in India provides a service to a foreign entity to enable it to book orders for customers in India. This is for the reason that the foreign entity is located outside India and the payment is received by the person residing in India in convertible foreign exchange. 53. The division bench, while making the reference, intended to deviate from this settled position of law only because, in its considered view, the decision of the Supreme Court in GVK Industries. The division bench, after recording a finding that ....