TaxTMI 
TaxTMI 
2026 (3) TMI 410
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....ed by the respondent qualify as export of services under Rule 3(2) of the Export of Service Rules, 2005 and consequently, the respondent is eligible to the rebate claim for the period April 2008, May 2008 to January 2009. 2. Briefly the facts of the present case are that the respondent is engaged in the provision of call center services to its overseas entity, British Airways, based in United Kingdom ("BA UK") in terms of the Masters Services Agreement dated 20.11.2007 and as per the Agreement, the respondent was engaged to provide call center service for which consideration was paid on a cost plus markup basis. The services were provided, in terms of the Agreement, to customers of BA UK in Asia Pacific region, including India, Dubai, Sy....
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.... 29.07.2016, he allowed the appeal of the appellant. Aggrieved by the said order, Revenue has filed the present appeal. 3. Heard both sides and perused the material on record. 4. Learned AR for the Revenue submits that the impugned order is not sustainable in law as the same has been passed without properly appreciating the Export of Service Rules, 2005. He further submits that Rule 3(2) of Export of Service Rules, 2005 mandated that the provisions of any taxable service specified in sub rule (1) shall be treated as export of service when the following conditions are satisfied. (a) Such service is provided from India and used outside India; and (b) Payment of such service provided outside India is received by the ser....
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....IOL-1877-CESTAT-DEL]. He further submits that the Tribunal, for the period July 2008 to September 2009 and January 2010 to February 2011, has held that it is an export of service and the respondent is entitled to refund claim. He further submits that in the appellant's own case for the period October to December 2009 reported in M/s BA Call Center India Pvt. Ltd. Vs C.S.T Gurgaon - 2016 (8) TMI 589- CESTAT New Delhi, the Tribunal has decided the issue in favour of the respondent. 7. Learned Counsel further submits that the services provided by the respondent qualify as export of service. He further submits that as per Rule 3(2) of the Export of Service Rules, 2005, the following two conditions should be fulfilled for the service to be tr....
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....have been upheld by the Hon'ble Supreme Court in the case of Commissioner of Service Tax-III, Mumbai Vs Vodafone India Ltd. (2025) 33 Centax 152 (SC). He also submits that in the present case, the call center services have been used by BA UK, situated outside India, as the said services have direct impact on the operations of British Airways. He also submits that the respondent has no contractual relationship with the end customer or passenger and the services rendered are in accordance with the terms of the agreement with BA UK and when the services are provided to BA UK, for the benefit of BA UK, the services are used outside India and the requirement prescribed in Rule 3(2) of the Export of Service Rules stand satisfied in the present ca....
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....side India and payment of such service is received in convertible foreign exchange. The word used "outside India" was also clarified by the Department vide its Circular dated 24.02.2009 and also vide Circular dated 13.05.2011 wherein it has been clarified that the phrase used "outside India" should be interpreted in the context where the effective use and enjoyment of the service has been obtained. Further, we find that this issue has been considered by various Benches of the Tribunal in the cases relied upon by the respondent cited supra viz. Paul Merchants Ltd., Vodafone Essar Cellular Ltd. & Microsoft Corporation (I) Pvt. Ltd. (all cited supra). These cases are upheld by the Hon'ble Supreme Court in the case of Commissioner of Service Ta....