2026 (4) TMI 695

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by the Commissioner of Central Excise, Customs and Service Tax, Cochin. 2. The appellant M/s Trans Asian Shipping Services Pvt. Ltd. are into providing various services namely Business Auxiliary Services, Business Support Services, Storage and Warehousing Services etc. One of the major businesses of the appellant is of operating a shipping line and also functioning as Multimodal Transport Operator wherein they arrange export and import of loaded containers from outside to India or from India to other countries. At foreign ports, they appoint foreign agents and these agents complete various port formalities and transportation on behalf of the appellant and handover the containers to the customers abroad for which commission is paid by the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fiable under 'Steamer Agent Services'. 3.1 It is further submitted that Rule 3(ii) of the Import of Service Rules is a performance-based test which governs categories, including Steamer Agent Services and its taxability depends on the place where the service is performed. In the instant case, since the services are received abroad, there is no liability to pay service tax. It is further stated that for the period from 01.07.2012 to 31.03.2014 based on the 'Place of Provision of Services Rules', 2012 only those services which are performed within the taxable territory are only liable to Service tax and in the instant case, since the services are rendered abroad, the question of service tax liability does not arise. Further, it is submitte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....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:..." 6. On perusal of the above Section, it makes absolutely clear that the service tax liability is attracted when taxable services are received from a foreign service provider and the service-recipient is situated in India and has its fixed establishment/permanent residence in India. Further, a deeming legal fiction has been created so as to treat the service-recipient as the service provider and for application of the provisions of Chapter V of the Finance Act, 1994. Therefore, since the services are rende....